Was ist die Net Revenue Retention (NRR) und warum ist sie f\u00fcr Ihr Abonnementgesch\u00e4ft wichtig? Erfahren Sie, wie Sie Ihre NRR berechnen und vergr\u00f6\u00dfern k\u00f6nnen.<\/p>","knowledge_hub_featured_image":206405,"knowledge_hub_hero_media_content_group":{"knowledge_hub_is_vidyard_video":false,"knowledge_hub_vidyard_video_group":{"vidyard_id":""}},"knowledge_hub_show_toc":true,"toc_card_title":"Why Zuora?","toc_card_description":"From subscriptions and hybrid bundles to complex usage and AI tokens, Zuora has the right solutions to solve the biggest CFO challenges with one monetization platform.","toc_cta_label":"Watch demo","toc_cta_link":"https:\/\/www.zuora.com\/resources\/demo-on-demand\/","knowledge_hub_content":[{"acf_fc_layout":"knowledge_hub_text_block","title":"Abonnementfinanzen","content":"
Sie wissen das sicherlich schon, aber wir m\u00f6chten Sie trotzdem daran erinnern, dass die Akquise neuer Kunden <\/span>nicht<\/span><\/i> der kosteng\u00fcnstigste Weg ist, mehr Umsatz f\u00fcr Ihr Unternehmen zu generieren. Ja, Kundenakquise ist wichtig, aber Sie werden weniger ausgeben und mehr verdienen, wenn Sie Ihren aktuellen Kundenstamm halten und weiterhin an ihn verkaufen.<\/span><\/p> Was das mit der Net Revenue Retention (NRR) zu tun hat? Viel!<\/span><\/p> NRR misst, wie viel wiederkehrenden Umsatz Sie durch bestehende Kunden in einem gewissen Zeitraum behalten und generiert haben im Vergleich dazu, wie viel Sie durch Herabstufungen und Stornierungen verloren haben. Wenn Sie die Net Revenue Retention berechnen, haben Sie eine gewisse Vorstellung davon, ob Ihr Unternehmen ausreichend viele Kunden h\u00e4lt, um langfristig zu \u00fcberleben und zu florieren.<\/span><\/p> In diesem Leitfaden geht es darum, warum NRR eine Schl\u00fcsselkennzahl f\u00fcr SaaS-Unternehmen ist. Es geht um Folgendes:<\/span><\/p> Los geht\u2018s!<\/span><\/p> NRR measures how much recurring revenue you\u2019ve retained and generated from existing customers over a set period of time vs. how much you\u2019ve lost from downgrades and cancellations. Calculating net revenue retention gives you a better idea of whether your business retains enough customers to survive and prosper in the long term.<\/p>\n In this post, we\u2019ll dig further into why NRR is a key metric for SaaS companies by sharing the following:<\/p>\n Let\u2019s dive in!<\/p>\n What is Net Revenue Retention?<\/a><\/p>\n Why net revenue retention matters<\/a><\/p>\n View customer satisfaction and loyalty<\/a><\/p>\n Strategically acquire new customers<\/a><\/p>\n Identify issues related to customer retention and churn<\/a><\/p>\n Forecast the financial health and growth of your business<\/a><\/p>\n Better determine whether your customers find long-term value in your service<\/a><\/p>\n Factors that influence Net revenue retention<\/a><\/p>\n Customer churn<\/a><\/p>\n Customer lifetime value<\/a><\/p>\n Gross revenues<\/a><\/p>\n Pricing and packaging strategy<\/a><\/p>\n How to calculate net revenue retention<\/a><\/p>\n NRR Calculator \u2013 Excel Template<\/a><\/p>\n What Is a good net revenue retention rate for SaaS companies?<\/a><\/p>\n How to improve net revenue retention<\/a><\/p>\n Ways to reduce customer churn and improve net revenue retention<\/a><\/p>\n Invest in customer success team (CS)<\/a><\/p>\n Improve customer support<\/a><\/p>\n Offer incentives<\/a><\/p>\n Increase communication<\/a><\/p>\n Update and improve your product regularly<\/a><\/p>\n Ways to increase expansion and improve net revenue retention<\/a><\/p>\n Introduce new premium features<\/a><\/p>\n Offer discounts<\/a><\/p>\n Create bundles<\/a><\/p>\n Ways to prevent downgrades and improve net revenue retention<\/a><\/p>\n Encourage annual billing<\/a><\/p>\n Promote the most valuable features<\/a><\/p>\n Ask customers why they\u2019re downgrading<\/a><\/p>\n Net revenue retention vs. gross revenue retention<\/a><\/p>\n Net Revenue Retention and Customer Success (CS)<\/a><\/p>\n The Challenges of Tracking Net Revenue Retention<\/a><\/p>\n Who should own NRR<\/a><\/p>\n NRR is a customer-centric metric<\/a><\/p>\n Impact of NRR of team size, technology and customer marketing<\/a><\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Key takeaways<\/a><\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Net revenue retention is one of the essential customer success KPIs<\/a> to measure SaaS and subscription-based companies' business health. It tells you about your business expansion, growth, and retention metrics.<\/p>\n As a SaaS company, you\u2019ll track NRR as a measure to:<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" When your customers are satisfied with your product or service, you\u2019ve secured your business as a powerful source for referral and recommendation. <\/p>\nA high NRR is a strong indicator of customer loyalty. It\u2019s also a good indicator of your business's ability to attract new customers. When existing customers continue to do business with you, it creates a positive impression on potential customers and makes it easier to convert them.","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" A decline or fall in NRR can be an early warning indicator of potential customer retention or churn issues. Keeping an eye on net revenue retention enables you to identify and address these challenges early.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" A consistent high net revenue retention can be a good metric to gain valuable insight into your business's financial health. And these insights can be used to forecast your business growth accurately.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" The trends of your customer upgrades or churn reflect a lot about the value of your service. Especially when customers keep getting value for their money, they want to continue doing business with you, and when they no longer get such value, they churn. A higher NRR can correlate with customers getting long-term value to continue using your service. A lower NRR indicates customers may not find long-term value in using your service.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" This is the percentage of users or customers who canceled their subscriptions or stopped doing business with you. A high churn means a low net revenue. Studies <\/a>have shown that reducing churn by 5% can increase your profit by 25% - 95%.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" This measures how much revenue you expect to generate from a customer over their lifetime with your business. It can impact your revenue retention as it influences your business potential for upselling\/cross-selling and repeated purchases from your existing customer. A high LTV shows that your customers will likely generate more revenue for your business, yielding higher NRR.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Offering customers flexible, personalized, and value-added pricing options can drive customer retention, increasing your net revenue retention. McKinsey\u2019s studies<\/a> found that a systematic improvement of business pricing can have a lasting impact on profitability.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" For example, assume your business starts this month with $100,000 MRR. Then you\u2019re able to generate $10,000 as additional revenue from upsells and cross-sells to existing customers. However, your customer churn rate for the month is 5%. Hence you\u2019ve lost $5000 in monthly revenue. Also, due to some customers downgrading their subscription, you lost $2000. <\/p>\nHow would you calculate the net revenue retention rate for this scenario? Easy. You\u2019ll use this simple net revenue retention formula:\nNRR = (Starting MRR + Expansion \u2013 Churn \u2013 Downgrades \/ Starting MRR) x 100<\/b>\n Data:<\/p>\nStart MRR = $100,000\n Expansion (due to upgrades) = $10,000<\/p>\n Churn rate = (5*100,000\/100 = $5,000) <\/p>\n Downgrades = $2,000<\/p>\n Now, here\u2019s how you\u2019d plug in the numbers from the example above: <\/p>\n NRR = ( [$100,000 + $10,000 \u2013 $5,000 \u2013 $2,000] \/ $100, 000) * 100<\/p>\n NRR = ( [$110,000 \u2013 $7,000] \/ $100, 000) * 100<\/p>\n NRR = ( $103,000 \/ $100,000) *100<\/p>\n NRR = 1.03 * 100<\/p>\n NRR = 103<\/p>\n Therefore, the NRR for your business is 103%.<\/p>\nSuppose this month, your company\u2019s expected to generate $300,000 MRR. You also generate $30,000 in additional revenue thanks to upsells and cross-sells. However, your customer churn rate for this month is 20%, so you lost $60,000 ( 20% of $30,000 MRR = $60,000) MRR. You also lost $5,000 of revenue due to some customers downgrading their subscriptions.\n Let\u2019s analyze the data:<\/p>\n Start MRR = $300,000<\/p>\n Expansion (due to upgrades) = $30,000<\/p>\n Churn rate = (20% of $30,000 = $6,000) <\/p>\n Downgrades = $5,000<\/p>\n Now, here\u2019s how you\u2019d plug in the numbers from the example above: <\/p>\n NRR = ($300,000 + $30,000 \u2013 $60,000 \u2013 $5,000 \/ $300,000) x 100 = 88.3%<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" If you want something simpler, we\u2019ve provided an interactive spreadsheet <\/a>to plug your numbers into.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_image_media","image":217824,"caption":"","include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":"Now, you may be wondering: Is 88.3% a good net revenue retention rate for a SaaS business? Well\u2026 not really. And here\u2019s why.","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Here are companies with NRR of 120 or higher<\/a><\/p>\n According to the data from SaaSBrief<\/a>:<\/p>\n 100% or below \u2014 Investigate and identify the cause of the issue.<\/p>\n110% you\u2019re at the median compared to the industry benchmark\n120% and above, your business is on the right track with healthy revenue growth from existing customers.\n That being said, a net revenue retention rate of around 90% can still be a good sign. With a few tweaks, your business could have a viable path toward growth.<\/p>\n So, how can you achieve a net revenue retention rate of 100% or higher?<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_image_media","image":200511,"caption":"","include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"WEBINAR","content":" While pricing and packaging is one of the most powerful mechanisms to capture new customers, it is also the area that requires the most significant change in mindset. To help, we have developed a 3D Pricing and Packaging (P&P) Framework, embedded in real life examples, specific guidance, and benchmarks.<\/p>\n Register now<\/a><\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":true},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Let\u2019s look at actions you can take for each one.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Customer churn is usually the biggest culprit of a low net revenue retention rate. If your churn rate is too high for too long, your business is in danger no matter how many new customers you acquire or how much expansion revenue you generate. Here are some ways to reduce customer churn:<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Once you\u2019ve tackled churn, increasing the revenue generated from your existing customer base is another effective way to improve your net revenue retention rate. Here are some ways to increase expansion revenue:<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" When a customer downgrades, you have a clear sign that something about your service is failing to justify the price. You\u2019ll want to address these issues immediately to prevent the customer from canceling their subscription. Here are some ways to prevent downgrades:<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Gross revenue retention (GRR) is another metric SaaS businesses can check to understand how well they\u2019re doing. GRR also measures the recurring revenue that a company retains. But, unlike NRR, it does not include revenue from expansion from upsells and cross-sells. Consequently, your gross revenue retention will always be equal to or lower than the net revenue retention rate, never exceeding 100%.<\/p>\n Because GRR focuses exclusively on recurring revenue, it's a more conservative metric than NRR when making financial projections. This makes it a good number to know when speaking to investors concerned about your business\u2019s financial health.<\/p>\n While NRR and GRR are important metrics for SaaS businesses, NRR is a more holistic measure of a business\u2019s growth because it encompasses all aspects of the customer lifecycle.<\/p>","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":" Customer success teams are important in driving any company's net revenue retention. <\/p>\n They don't only drive value to existing customers and keep them engaged and satisfied \u2014 they give a remarkable level of insight into customers, their challenges, and how a company's solutions can effectively address those pain points.<\/p>\n In a Podcast on The Revenue Hustle<\/a>, Michael Maday, Senior Director of Customer Success at Gainsight, speaks about the importance of customer success in driving the company's NRR:<\/p>\n \"No one knows the customer better than we do. No one knows the challenges that they have, the solution that we have, and how those two things can meet together and organically grow an account<\/i>.\"<\/p>\n He further says, \"We're also, in some ways, the protector of our customers from our partners in sales.\" <\/i>The CS team is best positioned to align customer needs with company solutions. By providing relevant solutions and constantly nurturing customer relationships, businesses can experience growth in existing customers, which results in higher net revenue retention.<\/p>\n Michael suggested, \"Having your CS team influence growth and be accountable for growth gives you checks and balances.<\/i>\"<\/p>\n\n \t
What is Net Revenue Retention?<\/h3>Net revenue retention is a key metric for subscription-based SaaS companies. It measures the revenue retained from existing customers over a specific period, such as monthly or annually.\nIf your business is struggling with churn, which could indicate that customers are unsatisfied with your product and service, net revenue retention helps you identify the customer retention problems and areas that need improvement to enhance the customer experience.\nTo calculate your business\u2019s net revenue retention, you want to consider the following four important factors:\n
\n \t
Why net revenue retention matters<\/h3>
View customer satisfaction and loyalty<\/h3>Net revenue retention helps you identify issues and trends with your customer loyalty, upgrades, and churn.","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":"
Strategically acquire new customers<\/h3>
Identify issues related to customer retention and churn<\/h3>
Forecast the financial health and growth of your business<\/h3>
Better determine whether your customers find long-term value in your service<\/h3>
Factors that influence Net revenue retention<\/h3>The following factors can influence the net revenue retention of a SaaS company.","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":"
Customer churn<\/h3>
Customer lifetime value<\/h3>
Gross revenues<\/h3>This measures the revenue retained from your customers without considering accounting expansion or upgrades. A high gross revenue shows your business generates more revenue from your existing customers and can positively influence your NRR. Note, this doesn\u2019t reflect the actual value of business profits.","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":"
Pricing and packaging strategy<\/h3>
How to calculate net revenue retention<\/h3>To calculate net revenue retention, you first need to determine your recurring revenue for a given period of time. This is the total revenue you expect to receive monthly or annually from your recurring customers.\nNRR Formula:\nNRR = (Starting MRR + Expansion \u2013 Churn \u2013 Downgrades \/ Starting MRR) x 100","show_striped_bar":false,"related_post":null,"include_in_toc":false},{"acf_fc_layout":"knowledge_hub_image_media","image":217820,"caption":"","include_in_toc":false},{"acf_fc_layout":"knowledge_hub_text_block","title":"","content":"Once you have your recurring revenue figure, you should add any additional revenue from expansion, such as upsells or cross-sells. Then, you\u2019ll need to subtract revenue lost from downgrades and customer churn.\nExample 1: High NRR\n
NRR Calculator \u2013 Excel Template<\/h3>
What Is a good net revenue retention rate for SaaS companies?<\/h3>A good net revenue retention rate for a SaaS and subscription-based business is 100% or higher. A 100% or higher rate demonstrates that your business is showing signs of growth despite losing money to churn and downgrades.\nOn the other hand, a net revenue retention rate below 100% (as we saw in the example above) means that your business is currently losing money and, consequently, not growing. \n
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Create a Winning Good Better Best Pricing Strategy<\/h4>
How to improve net revenue retention<\/h3>Improving your business's net revenue retention rate is an essential step to ensure your business survives in the long run. You can achieve that goal by:\n
\n\t
Ways to reduce customer churn and improve net revenue retention<\/h3>
Invest in customer success team (CS)<\/h3>
\n
Improve customer support<\/h3>
\n \t
Offer incentives<\/h3>
\n \t
Increase communication<\/h3>
\n \t
Update and improve your product regularly<\/h3>
\n \t
Ways to increase expansion and improve net revenue retention<\/h3>
Introduce new premium features<\/h3>
\n \t
Offer discounts<\/h3>
\n \t
Create bundles<\/h3>
\n \t
Give a free trial<\/h3>
\n \t
Ways to prevent downgrades and improve net revenue retention<\/h3>
Encourage annual billing<\/h3>
\n \t
Promote the most valuable features<\/h3>
\n \t
Ask customers why they\u2019re downgrading<\/h3>
\n \t
Net revenue retention vs. gross revenue retention<\/h3>
Net Revenue Retention and Customer Success (CS)<\/h3>