Discover how Gross Retention and Net Retention provide insights into customer retention and revenue growth. Learn how to track, analyze, and improve these metrics to drive sustainable business success.
Marketing
Lagging Indicators
GRR = ((Customers at End of Period – New Customers Added) / Customers at Start of Period) × 100
NRR = ((Customers at End of Period + Expansion Revenue – Churned Customers – Contraction Revenue) / Customers at Start of Period) × 100
Gross Retention Rate (GRR) measures how well a company retains existing revenue without expansion.
Net Retention Rate (NRR) accounts for revenue growth from existing customers, showing true revenue retention.
Salesforce, HubSpot, Chargebee, Stripe, Recurly, ProfitWell, Baremetrics.
Tracked monthly or quarterly to assess customer retention trends and revenue stability.
Achieve 95% Gross Retention and 110% Net Retention in Q3 by improving customer experience and expanding upsell opportunities.
A Customer Success Manager monitors GRR and NRR to measure retention performance. If GRR drops, they may enhance customer support; if NRR declines, they may refine upsell strategies.
Improve user experience to reduce churn and increase long-term retention.
Increase NRR by upselling premium features or cross-selling complementary products.
Use surveys and analytics to identify at-risk customers and prevent churn.
Monitor both GRR and NRR over time to refine retention strategies.
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