do you know? Revenue retention provides deeper insight than operating income.
In SaaS, NDR is one of the important indicators of customer retention rate. It can help you understand how your revenue from existing customers What is NDR and how has grown over a given period.
In this article, we will discuss how to improve NDR, thereby amplifying benefits and achieving growth.
The main points of this article
- Net Dollar Retention is the percentage of revenue you earn from your existing customer base over a specified period of time.
- Tracking NDRs can help you maintain financial strength and improve retention.
- NDR is the percentage of your monthly operating income (MRR) left at the end of a given period.
- A well-run SaaS company should maintain an NDR of more than 100% – as this shows that upgrades are more important than downgrades and changes.
- Unlike NDRs: Gross Revenue Retention shows how many customers you retain each year without considering upgrades.
- You can improve NDR by using account Afghanistan Phone Number scaling strategies like contextual in-app messages and patterns to prompt users to upgrade.
- You can use the in-app help center and NPS surveys to reduce churn and improve your SaaS NDR.
What is NDR in SaaS?
NDR is the percentage of revenue you earn from your existing user base during a specific period.
NDRs are usually calculated on a monthly or annual basis and include cross-selling, upgrades, cancellations and downgrades .
Let’s say your SaaS company has 120 customers What is NDR and how and churns 40 of those customers each year. That said, to measure your NDR, you have to take into account the additional revenue from the remaining 80 customers.
Net retention is also known as net negative churn because the opposite of revenue retention is revenue churn.