After the early days — most.
Of course, it varies. But one thing that is almost always true, is you get more renewals, more upsells, and more net revenue retention from your largest customers.
- Hubspot is almost all small businesses. As a best-of-breed player, it’s net revenue retention is about 95%.
- Shopify sells mainly to SMBs and is at about 100%.
- Zendesk has a mix of customers at 120% at IPO, down a smidge to 116% after IPO and 112% after Covid:
- Box has small, medium and large customers. It’s net revenue retention at IPO was about 130%.
- Twilio was 170% at IPO.
More here: Public SaaS Company Disclosure Metrics for Retention and Renewal Rates
So …
If you are selling mainly to small businesses, roughly, 80% net revenue retention is good, 90% is strong, 95% is Best of Breed.
If you are selling to enterprises, 130–140% net revenue retention is very strong.
For a blended model (S, M and L), 120% is strong a la Zendesk.
Whatever it is, measure it. Segment it. Resource it.
And drive it up.
Published on November 11, 2016