Net Revenue Retention (NRR)

A vendor metric showing the year-over-year change in revenue from existing customers, including expansion and churn.

NRR above 100 percent means existing customers spend more next year than this year (after factoring out churn and downgrades). Best-in-class B2B SaaS hits 120 to 140 percent NRR, driven by usage-based pricing or seat expansion. Buyers can interpret a vendor''s NRR as a measure of pricing aggressiveness: a 130 percent NRR vendor extracts more from existing customers each year, which often shows up as escalating renewal quotes.