NRR is probably the most underrated metric on the market
There’s definitely no scarcity of SaaS efficiency metrics leaders deal with. While all SaaS firms do, and should, dwelling in on acquisition metrics, there’s additionally huge revenue potential inside your present buyer base.
I feel NRR (net revenue retention) is with out query probably the most underrated metric on the market. NRR is solely whole revenue minus any revenue churn plus any revenue growth from upgrades, cross-sells or upsells. The better the NRR, the faster firms can scale. Simply put: the facility of compound math!
One of the most important and most impactful adjustments we made was to maneuver new enterprise, retention and account administration all beneath our chief revenue officer.
Over the course of two quarters, Terminus grew its NRR by more than 30 points, opening up unimaginable new ranges of progress alternatives.
To increase our NRR for the higher, I centered on three core pillars inside our group.
People
We took a holistic take a look at the group and our org construction. One of the most important and most impactful adjustments we made was to maneuver new enterprise, retention and account administration all beneath our chief revenue officer. At the tip of the day, it simply makes a ton of sense to have acquisition and retention dwelling beneath the identical roof — why trouble buying new clients should you can’t retain them?
We additionally rolled out a surround-sound crew (round three or 4 individuals per buyer) who onboard and assist clients with their account from day one. In whole, we’ve a few quarter of our firm devoted to this 24/7 assist and hands-on steering to make sure we’re enabling clients instantly.
