Pricing and NRR: The PeakSpan Ibbaka NRR Survey Results
The PeakSpan - Ibbaka survey on NRR performance was conducted in May and June of 2023 and gathered deep data on Net Revenue Retention (NDR or NRR) performance. SaaS leaders and investors are focused on Net Revenue Retention as a key indicator that customers are getting value from and value a solution. Customer acquisition costs (CAC) are generally much lower when selling to existing customers. High NRR gives the predictability that companies need to plan and invest.
The efficiency of the SaaS business model is built on customer retention. Without retention is it very difficult to make money in SaaS. Many companies are built on land and expand strategies. Product Led Growth (PLG) companies are examples of this. Good PLG companies are able to start small, grow revenues through excellent customer and user experience (CX and UX), and generate Product Qualified Leads (PQLs). Understanding NRR and the six factors that determine NRR are critical for this.
You can download the NRR survey here
You should download this survey if
You are responsible for the growth of your company
You are accountable for up-selling or cross-selling
Lead customer success
Need to understand key SaaS metrics
Want to benchmark your company
Included are detailed analysis of NRR by key factors. This report will help you understand differences in NRR benchmarks by SaaS vertical, packaging architecture, pricing metrics, and growth motion. It even looks at what organizational design is associated with great NRR performance.
The key characteristics of high and low performers are summarized in the below table.
Here is the Table of Contents:
Key Findings & Actions to Take
What is NRR?
The six NRR factors
Actions to take to improve NRR
Address churn
Manage discounting
Design pricing metrics for growth in package
Design packaging to encourage up-sell
Add cross-sell opportunities
Key Insights
Overall, NRR performance will be slightly worse in 2023
NRR performance is diverging by vertical
High Performers: AI and Data Analysis
Laggards: EdTech and HR
High performers are focused on growth
NRR performance is better when a dedicated team is responsible
Growth Motion and NRR
NRR and Package Architecture
NRR by Target Market
NRR Performance by Pricing Metric
How do professional services revenues impact NRR?
Comparing the top performers with the worst performers
Confidence in projections
Target Market
Industry Vertical
Growth Motion
Package Architecture
Organization Design
Pricing Metric
NRR Lever
NRR Growth Lever Choices
Pricing metrics and NRR
Pricing metrics for AI
Pricing metrics for API Integrators
Survey Demographics
You can download the NRR survey here
Read other posts on Net Dollar Retention
Pricing and NRR: The PeakSpan Ibbaka NRR Survey Results (this post)
Pricing Diagnostics and Rapid Response (Master Class with PeakSpan)
Using Pricing to Optimize NDR (Master Class with PeakSpan)
Net Revenue Retention (NDR) impacts the value of your company