Community / Sales Glossary
Retention

Net Retention

Net Retention is another commonly used term for Net Revenue Retention (NRR). It measures the percentage of revenue retained from existing customers over a 12-month period, including both churn and expansion. The terms are used interchangeably, though 'Net Revenue Retention' is the more precise and commonly accepted term in SaaS finance and investor reporting contexts. Both measure the same thing: whether your existing customer base is growing or shrinking as a revenue pool.

Formula
(Starting ARR + Expansion ARR − Churned ARR) ÷ Starting ARR × 100
Industry Benchmark
110%+ is strong. 120%+ is best-in-class. Below 100% means the existing customer base is net-shrinking.
Related Tools
NRR Modeler
Related Terms
NRR (Net Revenue Retention)GRR (Gross Revenue Retention)Churn RateExpansion RevenueCSM (Customer Success Manager)
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