Definition and formula
Net revenue retention (NRR) tells you how your recurring revenue from existing customers changes over a period, usually a month, quarter, or year.
A common formula is: (Starting MRR + Expansion MRR – Churned MRR – Contraction MRR) ÷ Starting MRR.
How to interpret NRR in PLG
NRR above 100% means your existing customers are growing their spend over time; NRR below 100% means churn and downgrades outweigh expansions.
High NRR is often a hallmark of mature PLG companies where product usage naturally leads to more seats, more usage, or higher-value plans.
Levers to improve net revenue retention
Increase expansion by tying pricing to usage or outcomes that grow as customers succeed (e.g., seats, transactions, active projects).
Reduce churn by improving activation, onboarding journeys, and feature adoption so more customers reach and maintain value.
How Skene influences NRR
Skene measures completion of key journeys and milestones that are often precursors to expansion events, such as adding users, enabling integrations, or rolling out to new teams.
By making these product signals visible, Skene helps you identify at-risk accounts early and design expansion plays rooted in real product usage.
Implementation notes
- Always analyze NRR by segment (e.g., by plan, industry, or company size) to understand where PLG is strongest or weakest.
- Pair NRR with leading indicators like activation rate, time-to-value, and feature adoption to move from lagging to leading insights.