Net Revenue Retention (NRR)
Agency glossary · Updated July 2026
Definition
Net revenue retention (NRR) measures how much recurring revenue an agency keeps and grows from its existing clients over a period, after upsells, downgrades, and losses, and without counting any new clients. Above 100% means the existing base grows on its own.
(Starting recurring revenue + expansion - downgrades - churn) / starting recurring revenue x 100Why it matters
NRR above 100% means revenue compounds before you win a single new client, because expanding an existing client is far cheaper than acquiring a new one. It is the clearest sign that growth is efficient and durable.
Common mistake: tracking how many clients you kept (logo retention) instead of how much revenue the existing base retained and grew, which hides silent scope-shrink when a client renews on a smaller retainer.
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