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.
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".
I'm actively trying to learn more about this -- we have a few examples in the portfolio but not enough for me to feel like I 'get' it. Will be watching Snowflake closely this year to learn.
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".
I'm actively trying to learn more about this -- we have a few examples in the portfolio but not enough for me to feel like I 'get' it. Will be watching Snowflake closely this year to learn.
Oooo, Snowflake is a good one. The example I had in my head was SAP, but Snowflake works too.