cust.co / Glossary / Expansion Contribution

Expansion Contribution

The percentage points NRR exceeds GRR. Measures how much of retention strength comes from upsell vs pure stickiness.

Also known as: NRR-GRR Spread, Expansion Spread

Definition

Expansion contribution = NRR - GRR. If NRR is 120% and GRR is 92%, expansion contribution is 28 percentage points - that 28pp is the lift from existing customers spending more. Higher = more upsell muscle. Lower = more pure-retention muscle. Both are valid; mature CS teams know their split. Useful for identifying whether to invest in expansion playbooks or churn-prevention.

Formula

NRR - GRR

Related terms

Net Revenue Retention (NRR) →Gross Retention Rate (GRR) →Expansion Revenue →

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