Net Revenue Retention (NRR) Documentation¶
Menu Location: Reports > Financial > Net Revenue Retention NRR
Access Level: Administrator and above
Last Updated: 2026-03-02
Overview¶
The Net Revenue Retention (NRR) page (mrr-reports3.php) calculates revenue retention by comparing customer cohorts year-over-year. It answers the critical question: "Of the customers we had last year, how much revenue are the remaining ones generating this year?" An NRR above 100% indicates the business is growing revenue from existing customers.
Primary Functions:
- Calculate Net Revenue Retention percentage by month
- Compare year-over-year customer cohorts
- Track customer retention from previous year to current year
- Visualize NRR trends over time via chart
- Navigate between MRR, Lifetime, and NRR report views
Page Layout¶
Header Section¶
- Page Title: "Net Revenue Retention"
- Navigation Buttons: Links to MRR Reports and Lifetime Reports (pull-right)
NRR Chart¶
- Chart: Visual line/bar chart (totalMRRData) showing NRR percentage trends over time
- Height: 300px visualization area
NRR Data Table¶
| Column | Description |
|---|---|
| Month | The comparison month |
| Prev. From | Start of the previous year period |
| Prev. To | End of the previous year period |
| Distinct Customers Previous Year | Number of unique customers in that previous year period |
| Revenue From Customer Group Previous Year | Total revenue from that customer group in the previous year |
| Current From | Start of the current year period |
| Current To | End of the current year period |
| Remaining Customers from Previous Year | How many of those customers are still active |
| Revenue from Remaining Customers in Current Year | Revenue generated by the remaining customers |
| NRR | Net Revenue Retention percentage |
Understanding NRR¶
What is Net Revenue Retention?¶
NRR measures how much revenue you retain (and grow) from your existing customer base over time, excluding new customer acquisition.
Formula:
NRR = (Revenue from Remaining Customers in Current Period) / (Revenue from Same Customer Group in Previous Period) × 100%
Interpreting NRR Values¶
| NRR Value | Meaning |
|---|---|
| > 100% | Remaining customers are spending MORE than last year (expansion) |
| = 100% | Remaining customers spend exactly the same (perfect retention) |
| 80-100% | Some revenue lost from churned customers, but core base is stable |
| < 80% | Significant revenue loss from customer churn or downgrades |
Why NRR Matters¶
- Growth Indicator: NRR > 100% means the business grows even without new customers
- Churn Impact: Shows the real financial impact of customer cancellations
- Upsell Effectiveness: High NRR indicates successful upselling/cross-selling
- Business Health: Investors and stakeholders use NRR as a key SaaS metric
How to Use¶
Viewing NRR Data¶
- Navigate to Reports > Financial > Net Revenue Retention NRR
- The page loads with data defaulting to the previous week's perspective
- Review the chart for visual trends
- Scroll through the monthly table for detailed numbers
Navigating Between Related Reports¶
- Click MRR Reports button to view Monthly Recurring Revenue metrics
- Click Lifetime Reports button to view customer lifetime value analysis
- All three reports share the same week selector for consistent date context
Reading the Table¶
Each row represents a month-over-month comparison:
- Look at the "Previous Year" columns to see the baseline customer count and revenue
- Look at the "Current Year" columns to see how many of those customers remain
- The NRR column shows the retention percentage
- Track NRR trends month-over-month to identify patterns
Common Use Cases¶
Monthly Business Review¶
Review the NRR trend line to assess whether revenue retention is improving or declining. Present the chart to stakeholders alongside MRR and churn data.
Churn Impact Analysis¶
Compare "Distinct Customers Previous Year" with "Remaining Customers" to quantify customer churn. Multiply the difference by average revenue per customer to estimate churn revenue loss.
Seasonal Pattern Identification¶
Look for months with consistently lower or higher NRR to identify seasonal patterns. This helps plan retention campaigns around historically weak periods.
Year-Over-Year Comparison¶
Use the month-by-month breakdown to compare performance across equivalent periods, accounting for seasonality in the subscription business.
Tips & Best Practices¶
- Track NRR monthly to identify trends before they become problems
- An NRR consistently above 100% is a strong indicator of product-market fit
- Use alongside churn data from the Lifetime Reports for a complete picture
- Seasonal businesses may see NRR fluctuations - look at trailing averages
- Compare NRR with customer satisfaction and cancellation reason data
FAQ¶
How is the "previous year" period calculated?¶
The system compares equivalent time periods one year apart, using the weekly cycle system to determine date boundaries.
Why might NRR differ from my manual calculations?¶
The system uses actual transaction data and counts distinct paying customers. Differences may arise from how credits, refunds, or partial orders are handled.
Can I change the time period being analyzed?¶
The page uses the week_id parameter (defaults to the previous week). The monthly breakdown covers a rolling period automatically.
How does this relate to MRR Reports?¶
MRR measures total recurring revenue including new customers. NRR specifically isolates existing customer revenue retention. Both are important but measure different things.
Related Pages¶
- Monthly Recurring Reports (
mrr-reports.php) - MRR analytics and subscription metrics - Lifetime Reports (
mrr-reports2.php) - Customer lifetime value and churn analysis - Cancellations - Cancellation tracking that impacts NRR
- Revenue Per Customer - Individual customer spending analysis