GRR vs NRR
GRR (Gross Revenue Retention) and NRR (Net Revenue Retention) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: GRR refers to gross revenue retention, while NRR refers to net revenue retention — they describe different things even when they show up in the same sentence.
GRR — Gross Revenue Retention
The percentage of recurring revenue retained from existing customers, excluding upgrades. GRR shows pure stickiness — capped at 100%.
NRR — Net Revenue Retention
The percentage of recurring revenue retained from existing customers over a period, including upgrades, downgrades, and churn. NRR > 100% means you grow even with zero new sales.
When to use GRR
Reach for "GRR" when the conversation is specifically about gross revenue retention. The percentage of recurring revenue retained from existing customers, excluding upgrades. GRR shows pure stickiness — capped at 100%.
When to use NRR
Reach for "NRR" when the conversation is specifically about net revenue retention. The percentage of recurring revenue retained from existing customers over a period, including upgrades, downgrades, and churn. NRR > 100% means you grow even with zero new sales.
FAQs
What is the difference between GRR and NRR?
GRR stands for Gross Revenue Retention — The percentage of recurring revenue retained from existing customers, excluding upgrades. GRR shows pure stickiness — capped at 100%. NRR stands for Net Revenue Retention — The percentage of recurring revenue retained from existing customers over a period, including upgrades, downgrades, and churn. NRR > 100% means you grow even with zero new sales.
Are GRR and NRR the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. GRR = Gross Revenue Retention. NRR = Net Revenue Retention.
When should I use GRR vs NRR?
Use GRR when you're specifically referring to gross revenue retention. Use NRR when the topic is net revenue retention.