Net Revenue Retention (NRR), also known as Net Dollar Retention (NDR), measures how much recurring revenue a company retains from existing customers after accounting for expansion, downgrades, and churn—without including new customer revenue.
In this episode, Paul Maxwell explains how to calculate and interpret NRR, why it matters in subscription businesses, and how RevOps teams use it to guide decisions about customer success, expansion, acquisition, pricing, and packaging.
You’ll learn:
How to calculate NRR
How expansion, contraction, and churn affect retention
Common B2B SaaS benchmarks
The difference between NRR and Gross Revenue Retention
Why headline NRR can conceal segment-level problems
How RevOps analyzes and improves NRR
How to build churn taxonomies and expansion playbooks
How NRR supports forecasting and strategic planning
NRR formula:
(Starting MRR + Expansion MRR − Contraction MRR − Churned MRR) ÷ Starting MRR × 100
CHAPTERS
00:00 What Is Net Revenue Retention?
00:50 Why NRR Matters
01:57 How to Calculate NRR
04:54 B2B SaaS NRR Benchmarks
06:35 Understanding the Drivers of NRR
07:37 NRR vs. Gross Revenue Retention
08:30 Choosing the Measurement Period
09:03 SaaS Company Example
12:37 Five Common Myths About NRR
19:29 How RevOps Applies NRR
23:33 Strategic Insights You Can Extract
26:55 Five Steps to Make NRR Actionable
30:10 Final Takeaway
#RevOps #NetRevenueRetention #SaaS