Sales / Customer Success
Renewal Rate GRR, NRR
The share of up-for-renewal business that actually renewed.
The fork, why two teams get different numbers
Logo vs dollar, and, the sharper one, the DENOMINATOR: available-to-renew
(ATR) in the period vs the total base. Plus timing: whether early renewals are
credited to this period and whether expansion at renewal is allowed to count.
Renewals and CS quote dollar renewal on ATR; boards look at gross/net revenue
retention on the base. Gross caps each account at its prior value; net lets
expansion push the figure above 100%.
The trap
Net renewal can exceed 100% because expansion masks logo churn, a healthy net number can sit directly on top of real customer loss that only the LOGO rate reveals.
In the Metric Library
- The full trap, worked on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: SaaS retention convention · ASC 606 for contract term determination