![]() Here’s the formula: Net Revenue Retention = (Starting Monthly Recurring Revenue + Expansion MRR – Churned MRR) ÷ Starting MRR x 100 Any company, SaaS or otherwise, that hopes to secure venture funding would be wise to measure, monitor, and push for improvements to its NRR. It’s a critical North Star metric because it’s a great indicator of a company's overall financial health. NRR considers upgrades, downgrades, and Customer Churn to measure growth potential from the company's current customer base. NRR measures the percentage of recurring revenue retained from existing customers over a specific period. We’ve broken these metrics down into two main categories: It's an extensive list, but it doesn't need to be overwhelming – it's more important to track the right metrics than to track all the metrics. This guide will break down some of the top PLG metrics that product-led organizations can measure, monitor, and move. This is why it's so important to follow the 7-step process outlined in this resource to ensure you're tracking the metrics that matter most: Building your metrics framework: A 7-step guide. In reality, most PLG companies take a hybrid approach, which adds to the complexity and scope of the metrics they need to track. Salesforce and GoGuardian are examples of SLG organizations. SLG companies employ 1-on-1 sales assistance to guide potential customers through the customer onboarding journey. Canva, Calendly, Shopify, and Zapier are all examples of PLG organizations. PLG companies use a self-service model where customers can create an account, learn the product, and use the product with no or limited sales team contact. The main differences between PLG and SLG are in sequencing and sales-team involvement: sales-led growth: A look at the differences
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