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Last reviewed August 2026

Glossary

Net revenue retention

Net revenue retention measures what happened to the money you already had, comparing revenue from existing customers now against a year ago. Upgrades, downgrades and cancellations all count; revenue from new customers does not. Above one hundred percent means the base grew on its own, and that is what subscription businesses are watching for.

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What net revenue retention says that churn does not

Not a weekly row. It is a monthly or quarterly figure for a leadership review, because a single week of upgrades tells you nothing at all. The weekly rows that feed it are the account management ones: reviews held with existing customers, expansion conversations opened, renewals falling due inside ninety days that somebody has contacted.

Retention decides whether growth compounds or leaks. A business at a hundred and ten percent grows without selling anything new, and one at eighty-five has to replace a seventh of itself every year before it starts. The gaming version is cohort selection: leave out the accounts that churned in their first months and the figure improves on paper.

Worked example: A workflow software company reported ninety-four percent retention and assumed it was fine, because raw churn looked low. Splitting by account size showed customers under twenty seats retaining at seventy-eight percent and larger ones at a hundred and nine. They stopped buying paid traffic for the small segment and moved the money into onboarding.

Sources: klipfolio.com/kpis/saas; kpi.org/kpi-basics/dashboarding-and-analysis

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