SaaS metrics
Net Revenue Retention (NRR)
Revenue kept and then grown on an existing base, expansion included.
Definition
Net Revenue Retention measures how the revenue of a cohort of existing customers evolves over twelve months, including expansions (upsell, cross-sell) and deducting contractions and churn. An NRR above 100% means the existing base grows on its own, without any new acquisition.
Why it matters
NRR has become the reference metric for SaaS investors because it reflects both retention and the ability to expand. Customer Success Manager and Account Manager steer it together: one protects the base, the other grows the accounts.
How Phano helps you
Phano detects both sides of NRR: accounts at risk of contraction and accounts ready for expansion, within the same diagnostic.
[Phano] €85,000 ARR, critical · Health 34/100 ●
June 1, 2026
→ Escalate to the sponsor
- • Silent for 28 days on email
- • Renewal in 22 days, quote not opened
- • No meeting scheduled in 6 weeks
+ custom fields: phano_phase, phano_confidence, phano_health_score…
History on this account
[Phano] €85,000 ARR, high · Health 47/100 ●
May 25 · → Schedule a sponsor touchpoint
[Phano] €85,000 ARR, medium · Health 58/100 ●
May 18 · → Monitor decision-maker engagement
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Frequently asked questions
What is Net Revenue Retention (NRR)?
Net Revenue Retention measures how the revenue of a cohort of existing customers evolves over twelve months, including expansions (upsell, cross-sell) and deducting contractions and churn. An NRR above 100% means the existing base grows on its own, without any new acquisition.
Why does Net Revenue Retention (NRR) matter?
NRR has become the reference metric for SaaS investors because it reflects both retention and the ability to expand. Customer Success Manager and Account Manager steer it together: one protects the base, the other grows the accounts.
How do you calculate NRR?
Starting MRR plus expansion, minus churn and contraction, divided by starting MRR, on the same cohort and excluding new customers.
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