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The PeakSpan - Ibbaka survey on NRR performance was conducted in May and June of 2023 and gathered deep data on Net Revenue Retention (NDR or NRR) performance. SaaS leaders and investors are focused on Net Revenue Retention as a key indicator that customers are getting value from and value a solution. Customer acquisition costs (CAC) are generally much lower when selling to existing customers. High NRR gives the predictability that companies need to plan and invest.  

The efficiency of the SaaS business model is built on customer retention. Without retention is it very difficult to make money in SaaS. Many companies are built on land and expand strategies. Product Led Growth (PLG) companies are examples of this. Good PLG companies are able to start small, grow revenues through excellent customer and user experience (CX and UX), and generate Product Qualified Leads (PQLs). Understanding NRR and the six factors that determine NRR are critical for this.

You should review this survey if:

• You are responsible for the growth of your company
• You are accountable for up-selling or cross-selling
• Lead customer success
• Need to understand key SaaS metrics
• Want to benchmark your company

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Included are detailed analysis of NRR by key factors. This report will help you understand differences in NRR benchmarks by SaaS vertical, packaging architecture, pricing metrics, and growth motion. It even looks at what organizational design is associated with great NRR performance.

The key characteristics of high and low performers are summarized in the below table.

Here is the Table of Contents:

• Key Findings & Actions to Take
• What is NRR?
  - The six NRR factors
• Actions to take to improve NRR
  - Address churn
  - Manage discounting
  - Design pricing metrics for growth in package
  - Design packaging to encourage up-sell
  - Add cross-sell opportunities
• Key Insights
  - Overall, NRR performance will be slightly worse in 2023
  - NRR performance is diverging by vertical
  - High Performers: AI and Data Analysis
  - Laggards: EdTech and HR
  - High performers are focused on growth
  - NRR performance is better when a dedicated team is responsible
  - Growth Motion and NRR
  - NRR and Package Architecture
  - NRR by Target Market
  - NRR Performance by Pricing Metric
  - How do professional services revenues impact NRR?
• Comparing the top performers with the worst performers
  - Confidence in projections
  - Target Market
  - Industry Vertical
  - Growth Motion
  - Package Architecture
  - Organization Design
  - Pricing Metric
  - NRR Lever
• NRR Growth Lever Choices
• Pricing metrics and NRR
  - Pricing metrics for AI
  - Pricing metrics for API Integrators
• Survey Demographics

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