Definition
Net revenue retention calculated separately for distinct customer cohorts, such as by signup quarter or segment.
Formula
(Cohort's current MRR / Cohort's starting MRR) x 100
How to measure
Isolate a specific customer cohort by signup period or segment and calculate its net revenue retention independently from the blended company-wide figure.
Why track it
Cohort-level NRR reveals whether retention is improving or declining for newer customers specifically, which a single blended NRR number can hide.
Example
A company finds its 2025 cohort retains at 105% NRR while its 2023 cohort has slipped to 92%, prompting a review of recent onboarding changes.
FAQ
- What is NRR by Cohort?
- Net revenue retention calculated separately for distinct customer cohorts, such as by signup quarter or segment.
- How do you calculate NRR by Cohort?
- (Cohort's current MRR / Cohort's starting MRR) x 100
- Why track NRR by Cohort?
- Cohort-level NRR reveals whether retention is improving or declining for newer customers specifically, which a single blended NRR number can hide.