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Net Revenue Retention (NRR) measures the percentage of recurring revenue retained over a one-year period from existing customers. NRR captures lost revenue due to customer attrition, reduced usage, or decreasing subscription level, offset by increased revenue from existing customers through up-sells, cross-sells, price increases, or increased usage. The term “net” is used because lost revenue is “netted” against expansion revenue. For a more detailed discussion and examples, please refer to the SaaS Metrics Standards Board definition.
Gross Revenue Retention (GRR) measures the percentage of recurring revenue that is retained over a one year period. GRR captures lost recurring revenue due to customers leaving or lowering their usage commitments. In contrast with NRR, GRR only includes the effects of churned customers or lower revenue (down-sell) from existing customers, and therefore must be no greater than 100%. For a more detailed discussion and examples, please refer to the SaaS Metrics Standards Board definition.