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Outbound & SalesMarketing Glossary

Net Dollar Retention (NDR)

NDR is often used interchangeably with NRR, but in some frameworks refers specifically to dollar-based retention (vs. logo-based). The distinction matters: a company can have 85% logo retention but 110% NDR if large accounts expand aggressively. Investors benchmark NDR carefully — best-in-class SaaS companies (Snowflake, Twilio historically) have hit 130%+ NDR, meaning they double revenue from the same customer cohort over time.

Real-World Example

For example, if your NDR is 130%, a cohort of customers who paid $1M last year is now paying $1.3M this year — without a single new customer. That's what makes expansion-focused SaaS businesses so capital efficient.

At Cactus

We track NDR as a health metric for clients with usage-based or seat-based pricing — it tells us if the product is actually growing into accounts.

Relevant Cactus Services

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