Net Revenue Retention (NRR) is the percentage of [[revenue]] from current customers over a specified period of time, taking into account customer base growth and churn. A good NRR is considered to be a figure above 100%. Visualizing Revenue Retention is usually a graph divided into cohorts of customers based on the date they started using the product. The cohorts are comprised of customers who continue to pay within a specified period. ## Net Revenue Retention Examples An example of NRR growth: a company starts using a subscription product with a minimum plan. The product solves the customer's problem well, and more employees begin to use it - the company switches to a more expensive subscription plan. Another example: a niche marketplace that does well selling online products in a certain category. Over time, the product expands to new categories that regular customers begin to buy. Purchase frequency increases, as does the lifetime value. A famous case - Amazon, which used to only sell books, but now sells practically any product. NRR above 100% means that the revenue from additional sales of an active customer base is higher than the negative effect of customer base churn. NRR is a key [[product metric]] of the financial state of product as business. It is especially important for the SaaS model, where the cost of acquiring new customers can be very high. Increasing NRR allows you to reduce the [[Customer Acquisition Cost (CAC)]] and increase the product marginality, which in turn gives more opportunities for growth in audience that a successful product can spend more on than its competitors. The main drivers of NRR growth are the usefulness of the product, virality, expansion into other niches, ease of use and sales techniques that allow you to increase the subscription cost. ![[telegram-cloud-photo-size-4-5777253831355247868-y.jpg]] On the graph is an example of a product with good Revenue Retention.