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Use this guide to measure how much revenue you retain from existing customers over time.

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Define revenue retention (pick one)

  • Gross revenue retention (GRR): how much existing-customer revenue remains, excluding expansion
  • Net revenue retention (NRR): GRR + expansion from existing customers
The exact definition depends on your business (subscription vs non-subscription). Write the definition down before you compute it.

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Suggested workflow

  1. Filter to valid orders: is_order_sm_valid = TRUE.
  2. Choose a baseline window (e.g., customers who purchased in a given month).
  3. Track subsequent revenue from that same customer set across future periods.
  4. Segment by acquisition channel, first product, or subscription status to identify drivers.

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Common pitfalls

  • Mixing subscription and one-time revenue in a single metric without clear separation.
  • Comparing cohorts at different maturity.