Net Revenue Retention (NRR) looks at the net revenue left over from your existing customers in a set time period.
Net Revenue Retention takes into account the total revenue minus any revenue churn (caused by departing customers, or customers who have downgraded) plus any revenue expansion from upgrades, cross-sells or upsells. Net revenue retention can be calculated at any time, but is usually looked at on an annual or monthly basis.
Net revenue retention is perhaps the most fundamental KPI in terms of determining customer success with your product. If you're a highly successful company with happy customers, your net revenue retention will most likely exceed 100%. If you're closer to 0%, it's time to start taking a serious look at where your customers are churning out and take evasive action.
Net Revenue Retention is a broad metric that functions as a snapshot of what your company might look like over time if no new customers were acquired.
It can be difficult to calculate Net Revenue Retention directly inside of Xero; that's where Causal comes in.
Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your Net Revenue Retention.
Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.
In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Net Revenue Retention. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.
When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.
Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Net Revenue Retention.