Gross Revenue Retention (GRR)

Gross Revenue Retention measures the percentage of revenue retained from an existing customer base over a period, excluding the benefit of expansion and revenue from new customers.

GRR captures the impact of customer churn and contraction while giving no credit for upsells or other expansion. Because expansion is excluded, GRR cannot exceed 100%.

Higher GRR generally indicates stronger underlying customer retention and greater stability in the existing revenue base. Declining GRR indicates that more revenue is being lost through customer churn or contraction.

GRR should be evaluated alongside Net Revenue Retention (NRR). GRR isolates revenue loss from the existing customer base, while NRR also incorporates expansion. A meaningful gap between NRR and GRR can indicate that expansion is offsetting underlying churn or contraction.

MetricFrame calculates GRR over a trailing one-year period by comparing revenue from customers active at the beginning of the period with revenue from those same customers at the end of the period. Each customer's ending revenue is capped at its starting revenue so expansion does not increase GRR.