Net Revenue Retention is often called the most important metric in SaaS. A company with excellent NRR can grow even during a sales slowdown — existing customers expand fast enough to offset all churn. Understanding what's normal helps you set the right targets.
NRR benchmarks by segment
| Segment | Median NRR | Top-quartile NRR |
|---|---|---|
| SMB-focused SaaS | 90–100% | 105–110% |
| Mid-market SaaS | 100–110% | 115–120% |
| Enterprise SaaS | 105–115% | 120–130% |
| PLG / usage-based | 110–130% | 130–150% |
Source: OpenView SaaS Benchmarks, ChartMogul benchmarks.
Why NRR varies by segment
SMB has higher churn (smaller businesses fail, change tools more often) and less expansion potential. Enterprise has lower churn and more seats/modules to expand into. PLG products with usage-based pricing grow naturally as customers use more — this is why Snowflake, Datadog, and Twilio have historically posted 130–150%+ NRR.
Improving NRR: the two levers
Reduce denominator shrinkage: cut churn and contraction. Improve onboarding, add health scoring, build sticky features.
Increase expansion MRR: seat growth, tiered limits, add-ons, annual plan migration.
Use the NRR Calculator to model how changes to expansion and churn affect your overall retention number.