Net Revenue Retention (NRR)
NRR measures the percentage of recurring revenue retained from existing customers over a period, including expansion revenue (upsells, cross-sells) and subtracting churn and downgrades. An NRR above 100% indicates net growth from the existing base.
Net Revenue Retention (NRR), also called net dollar retention, measures how much recurring revenue a company retains from its existing customer base over a given period, factoring in expansions (upsells, cross-sells, price increases), contractions (downgrades), and churn (lost customers). An NRR above 100% means the company is growing revenue from its existing customers even before acquiring new ones.
NRR is a key indicator of product-market fit and customer success. High NRR signals that customers are finding increasing value over time, while low NRR suggests retention or expansion challenges.
In partnership contexts, NRR can be segmented by acquisition channel. Partner-acquired customers often exhibit higher NRR because the partner's involvement during evaluation ensures better fit, and ongoing partner support (especially from MSPs and solution partners) improves adoption and reduces churn.
PartnerPulse enables you to track NRR segmented by partner source, allowing you to quantify the long-term revenue impact of your partner programs and identify which partner types drive the most durable customer relationships.
Measure partner NRR in PartnerPulse
PartnerPulse provides everything you need to build, manage, and scale your partner program.
Measure partner NRR in PartnerPulseRelated Terms
Customer Lifetime Value (CLV)
CLV is the total revenue a business can expect from a single customer account over the entire duration of their relationship. It helps quantify the long-term value of partner-acquired customers.
Lifetime Value (LTV)
LTV is the total net revenue expected from a customer over the entire duration of their relationship with a business. It is often used interchangeably with CLV and is fundamental to evaluating partner program ROI.
Recurring Commission
A recurring commission pays partners on an ongoing basis for as long as the referred customer remains a paying subscriber. It aligns partner incentives with customer retention and is common in SaaS partner programs.
Upsell Commission
An upsell commission rewards partners when a customer they originally referred upgrades to a higher-tier plan, adds seats, or purchases additional products. It incentivizes partners to maintain relationships beyond the initial sale.