Frequently asked questions
What is NRR and why does it matter?
Net Revenue Retention. The percent of starting revenue retained plus expansion, minus churn and contraction. The single best long-term health metric for SaaS. Above 110 percent is excellent; below 100 percent means the business is shrinking before considering new acquisition.
How is NRR calculated?
Take cohort revenue at start of period. Add expansion. Subtract contraction. Subtract churn. Divide by starting cohort revenue. Express as percent. The cohort definition matters. Most ops teams use month or quarter cohorts.
What NRR is typical for B2B SaaS?
Public SaaS median is around 110 to 115 percent. Top quartile hits 120+ percent. Below 100 percent suggests either weak expansion motion or high churn. Both fixable but different problems.
What drives NRR most?
Expansion mechanism. Usage-based or seat-expansion products often hit 115 to 125 percent NRR naturally. Fixed-license products struggle to exceed 105 percent without a deliberate cross-sell motion.
How does Landbase impact NRR?
Indirectly. By helping CS teams find expansion opportunities within existing accounts. Whitespace analysis (other teams, other use cases) is what feeds the expansion motion that pushes NRR above 110 percent.
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