This is so great, thank you. Finally someone articulated this. It's exactly why the marketing term should also prioritize customer marketing - not slough it off to a CX team. My last company failed to do this and the churn is pretty bad. Marketing can never drive enough new business to succeed with a leaky boat.
Great post. Interestingly I’ve always heard that it was “Net Revenue Retention” rather than “Net Dollar Retention” - wondering if those are the same thing?
Also, at Eventbrite when we IPOed we indeed had the “layer cake” chart - but we referred to it as “Rainbow Mountain” lol.
@Elena you should advise Churnkey on their copy, to make it consistent with the article :)
"Churnkey: Finally, there's someone to own retention for you."
If NDR/retention is so key for the business, should you outsource it?
"Juggling product releases and growth is hard enough. And then there’s retention, which requires so many different disciplines to improve, it’s left as a nebulous priority with no clear owner."
The insight is correct, but Growth includes retention :) , and ownership is a problem, but Churnkey cannot be the solution/owner.
I love this! Small improvements in churn can lead to significant revenue gains, far outweighing the benefits of marginal increases in conversion rates. The layered cake analogy nails this.
Love those layer cake charts, really drives the point home.
This is so great, thank you. Finally someone articulated this. It's exactly why the marketing term should also prioritize customer marketing - not slough it off to a CX team. My last company failed to do this and the churn is pretty bad. Marketing can never drive enough new business to succeed with a leaky boat.
Great post. Interestingly I’ve always heard that it was “Net Revenue Retention” rather than “Net Dollar Retention” - wondering if those are the same thing?
Also, at Eventbrite when we IPOed we indeed had the “layer cake” chart - but we referred to it as “Rainbow Mountain” lol.
Great stuff
NRR and NDR are interchangeable. But RAINBOW MOUNTAIN??? I've never heard of that, but I LOVE IT.
What software should we use to generate these layer cake charts?
Relevant, deep, insightful.
@Elena you should advise Churnkey on their copy, to make it consistent with the article :)
"Churnkey: Finally, there's someone to own retention for you."
If NDR/retention is so key for the business, should you outsource it?
"Juggling product releases and growth is hard enough. And then there’s retention, which requires so many different disciplines to improve, it’s left as a nebulous priority with no clear owner."
The insight is correct, but Growth includes retention :) , and ownership is a problem, but Churnkey cannot be the solution/owner.
I love this! Small improvements in churn can lead to significant revenue gains, far outweighing the benefits of marginal increases in conversion rates. The layered cake analogy nails this.