∞Direct answer
Direct answer
Show one fixed customer group. Do not show only a high total. Give the start date, size, rule, and result. For repeat sales, show GRR and NRR. GRR leaves out added sales. NRR includes them. [1] [2] Say what the data cannot show. This can help a funding talk. It cannot ensure a raise.
Choose proof that fits the business
Start with the repeat act that matters. A subscription firm can use paid sales. A free app can use a key repeat act.
A cohort is a fixed customer group. Pick a start month. Do not add new customers. This shows what the same group did over time.
For repeat sales, NRR compares money from the same group over time. It counts churn, cuts, added sales, and restarts. [1]
- Start and end date.
- Who counts as a customer.
- The act or sales that count.
- The system that gave the data.
Show loss before added sales
Show GRR and NRR in two rows. GRR counts churn and cuts. It does not count added sales. It cannot pass 100%. [2]
NRR counts added sales from the first group. It can pass 100% when added sales are more than churn and cuts. [1]
A small group can shift fast. One buyer can change the result. Put the buyer count next to the rate.
- Sales at the start and end.
- Loss from churn and cuts.
- Added sales from first buyers.
- Buyer count at both dates.
Make the result easy to check
Make one short proof page. Put the rule near the result. Add the dates, buyer count, and items left out.
Keep a source file. It can be a billing export or a dated product report. Say who made it and when.
Do not call a log-in retention when a key act matters. Do not mix free trials and paid buyers without a label. Use one rule each time.
- Metric name in plain words.
- Rule and time used.
- Groups in and out.
- A gap or odd event.
Use a benchmark with care
A benchmark gives context. It is not proof. SaaS Capital sorts private B2B SaaS data by annual contract value, or ACV. Its cited growth group has over $1 million in annual recurring revenue. [3]
That group may not fit a seed firm. Match the rule, time, buyer, price, and stage before you compare. Do not call a later-stage range a seed goal.
Name the risk left. The group may be new. A renewal may be due. A few buyers may be very large.
- What you measure now.
- What needs more time.
- The next check date.
- The file for that check.
FAQ
Frequently asked questions
Can I show retention before sales?
Yes. Show a fixed user group and a key act they repeat. Say this is use retention, not sales retention. Do not count a forced log-in.
Should I show GRR or NRR?
Show both if they fit. GRR shows sales kept before added sales. NRR includes added sales from the same group. [1] [2]
How long should the time be?
Use a time that fits buying and use. Keep it the same for each group. Twelve months is common for subscription firms. [1] Say when the group is too new.
Should I use a market benchmark?
Use it as marked context only. Check the buyer, price, rule, and time. SaaS Capital says ACV is a useful start for its private B2B SaaS survey. [3] It does not prove your result.
REF
Sources
- 1
ChartMogul
Net Revenue Retention (NRR) ↗ - 2
ChartMogul
Gross Revenue Retention (GRR) ↗ - 3