cust.co / Concepts / NRR vs GRR

NRR vs GRR - Net Revenue Retention vs Gross Retention Rate

Side-by-side definitional comparison of Net Revenue Retention (NRR) and Gross Retention Rate (GRR). Same starting cohort, two different lenses.

NRR (Net Revenue Retention)

Includes expansion. Measures retained + grown revenue.

(Starting + Expansion - Contraction - Churn) / Starting

Top quartile: >120% · Median: ~110%

Full definition →

GRR (Gross Retention Rate)

Excludes expansion. Measures pure churn + contraction loss.

(Starting - Contraction - Churn) / Starting

Top quartile: >95% · Median: ~88%

Full definition →

When each matters

NRR shows whether your existing book grew (expansion-led growth). GRR strips out expansion to show how leaky the customer base is. Use NRR for headline growth narrative; use GRR for CS team performance.

Which is bigger? GRR ≤ NRR always. The gap (NRR - GRR) is called the expansion contribution.

Real examples

Related concepts

Glossary terms that show up in this comparison.

Expansion Contribution →Logo Retention →Churn Rate →

Other concept comparisons

NRR vs Churn Rate

NRR and churn rate measure related but distinct things. NRR is forward-looking and includes growth; churn is backward-looking and isolates loss.
Consumption vs Subscription Pricing

Consumption pricing (pay-as-you-go) and subscription pricing (fixed seats/tier) shape retention metrics differently. Understand the mechanics before you switch.
Annual vs Multi-Year Contracts

Multi-year contracts lock revenue but hide churn. Annual contracts surface churn faster but give less forward visibility. Each fits a different go-to-market motion.
Enterprise vs SMB Retention

Enterprise NRR is typically 10-25 percentage points HIGHER than SMB. Understanding the gap tells you where to invest CS resources.
Account-Named vs Pooled CSM

Account-named CSMs (1:N specific accounts) vs pooled CSMs (queue-based). The choice depends on ACV, complexity, and retention goals.
Customer Success vs Account Management

Both roles own the post-sales relationship. The functional split tells you a lot about how a company prioritizes retention vs expansion.

Benchmark your retention

See how public B2B SaaS companies actually perform on these metrics, with full historical time series.

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