GTM Glossary · Metrics
Net Revenue Retention (NRR)
Revenue from existing customers this period compared with the same cohort a year earlier, including expansion, contraction, and churn.
[01]What It Means
Above 100% means the existing base grows without new logos. NRR is measured on a cohort, not on the whole book, otherwise new business masks decay in the installed base.
[02]Why It Matters
NRR is the most honest measure of whether the product delivers what the sale promised, and it decides how much of growth must come from acquisition. In a new market it is also the first evidence that local delivery works.
[03]Where It Goes Wrong
Including new customers in the cohort and reporting a flattering figure.Buying NRR with aggressive discounting on renewal, which hides value problems.Reading NRR too early in a market where no cohort has completed a renewal cycle.
[04]Related Terms