2 min - Jul 05, 2023

What is Gross Revenue Retention? You Mon Tsang on the Metric Stack Podcast

 

 

Understanding Gross Revenue Retention: 📈🔐 A Key Metric for Building a Lasting Subscription Business

This episode delves into Gross Revenue Retention (GRR) and its significance in building a sustainable subscription business. Join Metric Stack with You Mon Tsang, Founder and CEO of ChurnZero,  as we explore this key metric. 🎙️💡

GRR, calculated as the percentage of revenue retained from existing customers during a specific period, without including any upsell or cross-sell revenue, provides valuable insights into a company’s ability to retain customers and their corresponding revenue. By excluding expansion revenue, GRR focuses solely on the core retention efforts. 

For growth-stage businesses, GRR is a crucial metric to assess the health of their recurring revenue model. It can help expose underlying issues such as product problems, adoption challenges, or support issues. Companies can enhance long-term revenue potential by addressing these. 

Segmenting GRR allows businesses to gain deeper insights into customer groups, providing valuable information about retention performance across various markets or customer segments. Companies can make informed strategic decisions for improving customer retention by consistently tracking GRR. 

Integrating GRR into compensation structures incentivizes teams to prioritize customer retention, fostering a customer-centric approach. However, balancing retention and expansion opportunities is essential to ensure sustainable growth. 

Join Allan,  Lauren and You Mon as they discuss the significance of Gross Revenue Retention (GRR) in building a lasting subscription business. Learn how this key metric can reveal whether your company is laying a solid foundation for sustained growth and profitability in the subscription economy. 📈💪💼The full episode can be found here: https://www.klipfolio.com/metric-stack/episode/32/you-mon-tsang

#Podcast #SubscriptionBusiness #CustomerRetention #ChurnPrevention #RecurringRevenue #BusinessMetrics

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