Definition
The percentage of recurring revenue retained from an existing customer cohort, counting churn and downgrades but excluding any expansion revenue.
Why it matters for growth
GRR isolates how well a company keeps what it already has, without expansion masking a real churn problem the way NRR can.
Example
A company with the same starting ARR loses $50,000 to churn and downgrades over the year, giving a GRR of 95% even though NRR looked healthy.
FAQ
- What is Gross Revenue Retention (GRR)?
- The percentage of recurring revenue retained from an existing customer cohort, counting churn and downgrades but excluding any expansion revenue.
- Why does Gross Revenue Retention (GRR) matter for growth?
- GRR isolates how well a company keeps what it already has, without expansion masking a real churn problem the way NRR can.
- What is an example of Gross Revenue Retention (GRR)?
- A company with the same starting ARR loses $50,000 to churn and downgrades over the year, giving a GRR of 95% even though NRR looked healthy.