GRR
Gross Revenue Retention; measures the percentage of recurring revenue retained from existing customers, excluding upsells.
Keywords:
grr, gross revenue retention
Contents
Deep Dive
Metaphysical Synthesis & Analysis
The Synthesis
Gross Revenue Retention (GRR) measures revenue retained from existing customers, excluding expansions. GRR = (Starting MRR - Churned MRR - Contraction MRR) / Starting MRR. Unlike NRR, GRR can't exceed 100%. For PMs, GRR measures the 'leaky bucket': how much revenue you'd retain if no customers expanded. Best-in-class SaaS has GRR >90%.
Metaphysical Foundation
GRR is the measure of baseline retention. It shows how well you keep what you have, independent of growth.
Evolutionary Path
From focusing only on new bookings to measuring retention to distinguishing gross from net retention, metrics have become more nuanced.
