Grow enterprise value using Net Revenue Retention (NRR)

NRR measures how much revenue is retained from a cohort of customers from year to year, and it’s the most important KPI to set you up for future success.

Tackle churn head on

Global media spend is forecasted to grow by 4% in 2023 (Magna), with digital expected to grow by 10% (Insider Intelligence). While winning new logos is always a focus for media sales teams, in an increasingly competitive market, successful publishers have realized that revenue retention is often the most important driver of growth.

NRR helps publishers identify “leaky bucket” problems before they become crises. It also provides valuable insight to help media sales organizations grow their enterprise value. NRR also provides a SaaS-friendly metric to shareholders and potential investors–and publishers that look more like SaaS companies tend to fetch higher valuations.

HOW IT WORKS

NRR compares a customer cohort’s current trailing revenue to that same cohort’s trailing revenue from the previous period (typically year-over-year). It includes expansion, contraction, and churn–providing a holistic view of retention.

Year after year, publishers with the highest revenue growth rates have the best NRR rates. Discover our comprehensive annual report, "Media & Ad Sales Pricing & Yield Trend", a valuable resource that delves into the world of NRR (Net Revenue Rate) and provides essential benchmarks and insights to fuel your profitable growth. To access the latest version of this insightful publication, simply navigate to the Resources/EBooks & Webinars section at the top of our website or click at https://www.boostr.com/ebooks-and-webinars. Don't miss out on the opportunity to stay informed and empowered. Get your copy today!