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The best measure of retention or churn for a software or SaaS company is Net Revenue Retention. Not only does it take into account churning revenue and down-sells (like Gross Revenue Retention does) but it also takes into account upsells. The best SaaS / software companies have Net Revenue Retention of over 120-130% (i.e. they are upselling their customers by significantly more than the customers they are losing). This video shows you the calculation for net revenue retention with an easy example of how to calculate.
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