Net Revenue Retention Benchmarks: The Full-On Guide

Net Revenue Retention (NRR) is a crucial metric for assessing the health of a SaaS business, as it evaluates how effectively revenue from existing customers is maintained and grown. NRR includes aspects like expansions, downgrades, and churn, and is calculated by comparing monthly recurring revenue changes against industry benchmarks to determine the effectiveness of retention strategies. A "good" NRR is above 100%, indicating not just customer retention but also revenue growth from existing customers. However, benchmarks vary, and even an NRR below 100% can be healthy in some contexts. To improve your NRR, focus on reducing customer churn, discouraging downgrades, and encouraging upgrades or cross-selling to maximize revenue. Togai's pricing implementation platform offers effective NRR management.