GRR vs NRR โ The Retention Stack
Think of GRR as the floor and NRR as the ceiling. GRR shows the worst case โ what percentage of revenue survives without any upsell. NRR shows the full picture once expansion revenue is added back.
A business with 85% GRR and 110% NRR is growing despite significant churn โ expansion is masking a retention problem. Eventually, expansion MRR will fail to offset accelerating churn. Fix GRR first; then NRR improvement becomes durable.
Why GRR Above 90% Matters
Investors model NRR but stress-test GRR. If your expansion MRR disappears (a down market, pricing pressure, competitive shift), what does your revenue base look like? 90%+ GRR means surviving a difficult year. 70% GRR means losing 30% of revenue annually โ even in a good year, you're fighting to stay flat.