Net revenue retention (NRR)
Net revenue retention (NRR) is the revenue a group of customers pays you in a later month as a percentage of what the same group paid in their first month, including upgrades. Above 100% means existing customers grow on their own; split by acquisition channel it shows which channels bring customers who stay and expand rather than leave.
Formula
NRR(cohort, month n) = net revenue(cohort, month n) / net revenue(cohort, month 0) × 100Take the customers who first paid in one month, add their net revenue in a later month including upgrades and minus refunds, and divide by their net revenue in their first month.
Worked example
| March cohort, month 0 net revenue | $2,000 |
|---|---|
| Same cohort, month 3 | $1,860 |
- $1,860 / $2,000 × 100 = 93%
The March cohort retains 93% of its net revenue after three months.
How ProductLense shows it
ProductLense shows net revenue retention cohorts by acquisition channel on the Revenue page, months 0 to 12 as a shaded grid, so you can see that newsletter customers hold at, say, 100% while paid social customers fall away. Available on the Growth and Scale plans.
ProductLense needs at least two months of payments from a billing connection, so cohorts have a month 0 and a later month, and identify calls so each customer resolves to a first-touch channel.
NRR: questions
- What is NRR?
- Net revenue retention (NRR) is the revenue a group of customers pays you in a later month as a percentage of what the same group paid in their first month, including upgrades. Above 100% means existing customers grow on their own; split by acquisition channel it shows which channels bring customers who stay and expand rather than leave.
- How do you calculate NRR?
- Take the customers who first paid in one month, add their net revenue in a later month including upgrades and minus refunds, and divide by their net revenue in their first month. For example, a cohort that paid $2,000 in its first month and $1,860 in month 3 has 93% NRR.
- Where does ProductLense show NRR?
- ProductLense shows net revenue retention cohorts by acquisition channel on the Revenue page, months 0 to 12 as a shaded grid, so you can see that newsletter customers hold at, say, 100% while paid social customers fall away. Available on the Growth and Scale plans.
- What does ProductLense need to calculate NRR?
- ProductLense needs at least two months of payments from a billing connection, so cohorts have a month 0 and a later month, and identify calls so each customer resolves to a first-touch channel.
- How is NRR different from GRR?
- NRR counts upgrades and expansion, so it can exceed 100%. Gross revenue retention ignores expansion and only counts what was kept, so it can never exceed 100%. A channel with high NRR but low GRR brings a few customers who expand a lot while many others leave.
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