CS ROI Without the Hand‑Waving
Attractive aggregate metrics can conceal the details we need to make informed decisions. Separate activity from effect and keep the math boring and consistent. Useful, defensible formulas:
-
-
NDR vs. GRR: The Two Retention Numbers That Matter
Two canonical formulas: – Gross Revenue Retention (GRR) = (Starting ARR − Contraction − Churn) ÷ Starting ARR – Net Dollar Retention (NDR) = (Starting ARR + Expansion − Contraction − Churn) ÷ Starting ARR GRR shows how well you keep what you have. NDR shows whether existing customers grow enough to offset losses. They…