Gross Revenue Retention

Metric Name

Gross Contracted Annual Recurring Revenue

Metric Family

Bookings

Metric Definition

GRR is the percentage of recurring revenue retained from existing customers over a specific period, excluding any revenue gained from new customers, upsells, or expansions. It focuses solely on the revenue that remains from the original customer base after accounting for churn and downgrades.

Formula

Gross Revenue Retention = (Starting CARR - Churn CARR - Downsell CARR) / Starting CARR

Application

Customer Retention Insight: GRR provides a clear picture of how well the company retains revenue from its existing customer base, excluding growth from new customers or upsells. Revenue Stability: GRR indicates the stability of the company's revenue streams from its core customer base. Performance Measurement: GRR helps in evaluating the effectiveness of customer retention strategies and identifying areas for improvement.