GLOSSARY · CHURN METRICS
Gross revenue retention (GRR)
Gross revenue retention (GRR) is the share of recurring revenue kept from existing customers after churn and downgrades, without counting expansion.
Also called GRR · Gross dollar retention · GDR
GRR answers one question: of the recurring revenue you had at the start of the period, how much did you keep? Cancellations and downgrades reduce it. Upgrades, add-ons and new customers are left out, so GRR can never exceed 100%.
Because expansion cannot hide losses, GRR is a clean measure of how well the base holds. Read it next to net revenue retention: a large gap between the two means growth from existing customers is masking churn.
Failed payments that end in cancellation reduce GRR like any other churn, so payment recovery and cancellation saves both show up in this metric.
Formula
(Starting MRR − churned MRR − contraction MRR from those customers) ÷ starting MRR × 100
Related terms
Go deeper
Sources
- Chargebee Docs: Retention (gross revenue retention rate) chargebee.com
- Chargebee Docs: Recurring revenue chargebee.com