How to calculate Net Retention Rate (NRR) correctly

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📈 About This Video: How to Calculate Net Retention Rate (NRR) Correctly

Net Retention Rate (NRR) is a critical metric for any business looking to understand customer value and build long-term growth. However, calculating it correctly can be a challenge. In this video, we break down the steps to accurately calculate your NRR, helping you gain a deeper understanding of your customer base and how to retain them.

🔑 Key Takeaways:

Understand the importance of NRR in customer retention and business growth.
Learn the formula for calculating NRR.
Get insights into common mistakes to avoid when calculating NRR.
Discover how to interpret your NRR results for strategic planning.
📊 Why NRR Matters

NRR helps you measure customer value beyond just acquisition.
It provides insights into customer satisfaction and loyalty.
A high NRR indicates strong customer relationships and potential for growth.
📝 NRR Formula

The basic formula for NRR is (Revenue at End of Period - Expansion Revenue) / Revenue at Start of Period x 100.
We'll walk you through each component of the formula to ensure you get it right.
❌ Common Mistakes

Not accounting for churned customers.
Ignoring expansion revenue from upsells or cross-sells.
Using inconsistent time periods for calculation.
📈 Interpreting NRR

An NRR over 100% indicates you're growing revenue from existing customers.
An NRR below 100% signals a need for improvement in customer retention strategies.
🛠 Tools & Resources

For more advanced analytics tools and resources, check out our website Qmantic.com.
📞 Connect With Us

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