NRR measures how much revenue you retain from your existing customer base over a period, including expansions and upgrades. The formula: (Starting MRR + Expansion MRR - Churn MRR - Contraction MRR) ÷ Starting MRR. 100% NRR means you're not losing revenue to churn. 120%+ NRR means your existing customers are growing fast enough to offset losses — the holy grail of SaaS growth.
For example, if you start with $500K MRR, add $75K in expansions, lose $25K to churn, and $10K to downgrades, your NRR is 108% — meaning even with zero new customers, your revenue still grows.
We help clients build expansion revenue programs — identifying upsell triggers and building marketing campaigns that turn single-product users into multi-product accounts.
Relevant Cactus Services
We implement Net Revenue Retention (NRR) strategies for B2B tech startups every day. Book a free 30-minute call to get a concrete plan for your situation.
Book a free strategy call →Ideal Customer Profile (ICP)
Your ICP is the precise description of the company most likely to buy, stay, and expand.
Sales Development Representative (SDR)
An SDR is the outbound hunter on your sales team — their job is to generate qualified meetings, not close deals.
Business Development Representative (BDR)
A BDR is similar to an SDR but often focuses on larger, more strategic accounts or outbound into new markets rather than a defined territory.
Total Addressable Market (TAM)
TAM is the total revenue opportunity if you captured 100% of your target market.
Serviceable Addressable Market (SAM)
SAM is the portion of TAM you can actually reach with your current GTM motion.
Serviceable Obtainable Market (SOM)
SOM is the slice of SAM you can realistically capture in the next 12–24 months given your resources, competition, and execution capacity.