Revenue retention tracking

Revenue retention tracking measures how well a product maintains and grows revenue from existing customers over time. This analysis focuses on two key metrics: net revenue retention (NRR) and gross revenue retention (GRR). Think of GRR as the base revenue you keep from existing customers, while NRR shows the total picture including any additional revenue from these customers.^[1]

Here's how they work: if you start with 100 customers each paying $1,000 monthly ($100,000 total), and after one year 90 customers remain but some upgraded their plans, you have two numbers to track. GRR looks at just the remaining original payments — so 90 customers at their original price means 90% GRR. Now, if those 90 customers are actually paying more due to upgrades, bringing the total to $120,000, your NRR would be 120% — showing that despite losing customers, revenue grew through expansions.

Monthly tracking of these retention metrics helps identify trends in customer satisfaction and product stickiness. High retention rates indicate strong product-market fit and effective customer success programs, while declining retention often signals competitive pressures or product issues requiring attention.