Gross dollar retention measures the amount of revenue that you keep from your existing customer base. Gross dollar retention (GDR) along with net dollar retention (NDR) are critical metrics for SaaS operators and investors. Gross dollar retention is also known as gross revenue retention (GRR). As operators of our SaaS businesses, it’s critical to track, […]
Revenue Retention
How to Calculate Customer Retention Cost
The focus has shifted! Capital markets are tight. Economic conditions are unknown. New customer growth may be slowing down. Time to focus on customer retention and the health of our recurring revenue. What does it cost to retain a customer? It’s somewhat ambiguous when we try quantify our customer retention costs. We know that we […]
How to Calculate Net Dollar Retention
Net dollar retention measures the amount of revenue that you keep and expand in your existing customer base. Net dollar retention (NDR) along with gross dollar retention (GDR) have become popular metrics in the valuation world. Retention is Pillar 2 of my 5 Pillar SaaS Metrics Framework. Retention is critical to track, monitor, and improve […]
How to Calculate SaaS Revenue Retention
Recurring revenue businesses have become the stars of the investment world. Investors love stable, recurring revenue streams. Valuations are tied to the health of our recurring revenue. But how do we measure the health of our recurring revenue? We use gross dollar retention (GDR) and net dollar retention (NDR). As operators of our SaaS businesses, […]