As the frontier of knowledge about subscription companies expands, net revenue retention (NRR) has become the predominant metric in assessing the viability & value of companies in the category. To state the obvious: higher is better. Higher NRR means greater expansion or less churn (likely both) which means a stickier user base that compounds revenue quicker and more cheaply.
Makes sense for pure subscription models. How do you think about defining NRR in the context of consumption models? There are a lot of products that have such a large number of plans, it can make sense to have an intermediate category that is a little "consumption-y" and a little "subscription-y".
Makes sense for pure subscription models. How do you think about defining NRR in the context of consumption models? There are a lot of products that have such a large number of plans, it can make sense to have an intermediate category that is a little "consumption-y" and a little "subscription-y".