1. Gross Revenue Retention (GRR)
Your GRR tells you how much revenue you’ve retained from existing customers over a year. If your GRR is 100%, it means every customer from a year ago is still paying the same amount today. However, if you’ve lost 20% of that revenue, your GRR drops to 80%.
📌 Benchmarks:
- SMBs should aim for 82–84%.
- Enterprise businesses should target 98–100%.
The higher your GRR, the stronger your customer loyalty.
2. Value Milestones: Are You Delivering on Your Promise?
Every SaaS product promises an outcome—whether it’s a 15% boost in sales or 20% time savings. A value milestone is when a customer actually achieves that promised benefit.
To retain customers, you need to measure:
✅ How many customers achieve their promised value milestone?
✅ Are they achieving it within the expected timeframe?
If you don’t track this, you’re not just missing insights—you’re missing opportunities to improve customer satisfaction.
3. Time-to-Value (TTV): Speed Matters
Even if your customers reach their value milestone, how long does it take? If it takes five years to get a 15% sales boost, that’s a failure. But if they hit that goal in 60 days, they’ll stick around.
To improve retention:
🔹 Track the average time it takes for customers to see success.
🔹 Optimize onboarding and support to accelerate value realization.
Retention = Growth
SaaS businesses don’t just sell software; they sell outcomes. If you track these three metrics—GRR, value milestones, and TTV—you’ll not only reduce churn but also build long-term customer relationships.
Are you tracking these metrics? If not, now is the time to start! 🚀
Additional Resources
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How to Scale and Grow a SaaS Business
