Keep and grow the customers you win
Expansion, upsell and churn
Growing revenue inside accounts you already have, and stopping the leaks.
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What is net revenue retention and why does every investor keep asking me for it?
NRR is what happens to the revenue from one group of customers over a year, with no new logos counted: start with what they paid, subtract what chu...
What is the difference between gross retention and net retention, and which one should I watch?
Gross retention counts only what you lost: churn and downgrades, capped at 100 percent. Net retention adds expansion on top, so it can go above 100...
What does land and expand mean, and does it apply to my company?
Land and expand means you deliberately sell a small first deal to one team, prove it works, and grow from there into more seats, more teams or more...
How much churn is normal, and is mine bad?
For software, annual churn above roughly 6 percent is the point where people start calling it high, and monthly churn benchmarks vary hugely by who...
We are losing customers to failed payments. How do I fix involuntary churn?
This is the cheapest retention win available and almost nobody owns it. Involuntary churn is typically 20 to 40 percent of total churn and it is a ...
How do I move net revenue retention from around 100 percent to 120 percent?
Do it in the right order. First stop the leak, because expansion built on a leaky base is exhausting: fix involuntary churn, then find the segment ...
Who should own expansion: sales, customer success, or a dedicated team?
Split it by how hard the sale is. Simple expansions that follow naturally from usage (more seats, the next tier) should sit with CS, because they a...
Our churn got noticeably worse this year. How do I run the fix as a leader?
Make it one of the company's top three goals and put one named person on it, which sounds too simple and works almost every time. Then segment befo...
How did Snowflake reach 158 percent net revenue retention, and what is actually copyable?
Consumption pricing did it. Customers paid for what they ran, so as they moved more workloads onto the platform their spend grew with no upsell con...
Does usage-based pricing really lift expansion, and should we switch?
The numbers say yes: top quartile net retention for largely usage-based companies runs around 122 percent versus about 109 percent for those with n...
What NRR should a genuinely best-in-class company target in my segment?
Bessemer's bands are the ones boards use: 100 percent is good, 110 percent is better, 120 percent and above is best. But segment moves the goalpost...
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