Growing Net Revenue Retention with Usage Based PricingUsage-based pricing can increase NRR through organic account growth and reduced churn.

In 2023, the focus of SaaS businesses is shifting from customer acquisition to retention and expansion due to economic slowdowns. Net Revenue Retention (NRR) has become a crucial metric for measuring loyalty and growth among existing customers. Usage-based pricing can improve NRR by encouraging organic account growth and reducing churn rates. A data-driven approach across all departments, including engineering, sales, and customer success, is necessary to increase NRR. Retention forms the foundation of NRR growth, with customer success teams using data to detect early signs of potential churn and monitor long-term trends. Upselling opportunities can be identified by tracking customer usage against tier limits or consumption forecasts. Transparency in usage helps avoid refunds and maintain good customer relations. Overall, a focus on retention and expansion, coupled with a data-driven approach, is essential for SaaS businesses to thrive in the current economic climate.