The percentage of recurring revenue retained from existing clients, including expansions, contractions, and churn.
The percentage of recurring revenue retained from existing clients, including expansions, contractions, and churn.
Net Revenue Retention measures how much recurring revenue you keep and grow from your existing client base. Unlike simple retention rate, NRR accounts for upsells (expansion revenue), downgrades (contraction), and churn. An NRR above 100% means you're growing revenue from existing clients even without new sales.
For agencies with retainer models, NRR is arguably more important than client count. You can lose clients but still grow if remaining clients expand their contracts. Top-performing agencies achieve 110-130% NRR through strategic account growth.
Starting MRR: $100,000. Expansion: +$15,000. Contraction: -$5,000. Churn: -$8,000. Ending MRR from existing: $102,000. NRR = 102%
Angelwood helps identify expansion opportunities and protect against downgrades by tracking client engagement and satisfaction.
Explore related concepts
The total revenue an agency can expect from a client relationship over its entire duration.
The percentage of clients an agency keeps over a specific period, typically measured annually.
A contract where clients pay a recurring fee for ongoing services, typically monthly, rather than per-project.