Formula
NDR = (Revenue End of Period - Revenue Lost + Revenue Gained from Upgrades) / Revenue Start of Period * 100
Know your metric
Importance of
NDR
Overall Revenue Health
Reflects overall health of revenue from existing customers.
Expansion Success
Indicates success of upselling and cross-selling.
Long-term Customer Value
Helps understand the long-term value of customer relationships.
Drawbacks of
NDR
Complex to Track
Difficult to calculate accurately due to various revenue adjustments.
May Obscure Churn
High expansion revenue can mask significant churn.
Not Indicative of Customer Acquisition
Doesn’t reflect new customer revenue.
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