Net Retention Rate measures how much revenue you retain and grow from existing customers, excluding new customers.
NRR (Net Retention Rate) shows how revenue from your existing customer base evolves over a period, comparing expansion (upsells) against churn and downgrades — new customers aren't counted.
An NRR above 100% means existing customers are spending more than you lose to cancellations, even without acquiring new customers. Top SaaS companies aim for an NRR of 110-130%.
Customer service is a direct lever for NRR: every satisfied customer who upgrades to a higher plan or adds extra features raises NRR, while every cancellation due to poor service lowers it.
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