6 Ways to Maximize NRR


If your business model is based on subscriptions, Net Revenue Retention (or NRR, the percentage of revenue retained from existing customers) is the key metric that determines success, and the higher the better. Here are six evidence-based recommendations to maximize NRR, based on the 2023 TSIA Renewals Survey.

  1. Include auto-renewal terms in your contract

They increase the likelihood of renewals from 81 to 90%.

2. Quote early

Providing quotes 90 days before the renewal date increase the likelihood of expansion sales (i.e., the customer purchasing more seats or more volume) from 15 to 31%.

3. Use renewals specialists

They increase NRR by 16 points for high-complexity environments, and 10 points for medium-complexity. (They don’t make much of a difference for low-complexity environments.)

4. Don’t let Sales own renewals

Companies where sales executives own renewals are growing much slower than others: 14% vs. 22%.

5. But have Sales own cross-selling opportunities

Renewals specialists and CSMs do well with expansion sales and upsells (selling new products or service to existing contacts), but when they own cross-sells (selling to new contacts within an existing customer), they experience 9% lower renewal rates.

6. Define an escalation process for renewals

Some renewals require escalating back to a sales executive. Don’t settle for ad-hoc escalations: they yield an 8% lower success rate than a preplanned process.


How do you handle renewals, expansions, upsells, and cross-sells? Tell us in the comments.