Gross Revenue Retention (GRR) is a key performance metric in SaaS and subscription-based businesses that measures how much recurring revenue is retained from existing customers over a given period — excluding any upgrades or expansions. GRR focuses purely on revenue stability by evaluating the impact of churn and downgrades, making it a vital signal of customer satisfaction and product value.
What Is Gross Revenue Retention?
GRR answers the question:
“How well are we retaining the revenue from our existing customers without any upsells or expansion?”
It evaluates the percentage of recurring revenue that remains after customer churn and contractions, but ignores any additional revenue from upgrades or cross-sells.
This gives businesses a clear and conservative view of their customer retention health.
GRR Formula
GRR = (Recurring Revenue at Start – Revenue Lost to Churn – Revenue Lost to Contractions) ÷ Recurring Revenue at Start × 100
Example:
Starting MRR = $100,000
- $10,000 lost to churn
- $5,000 lost to plan downgrades
GRR = ((100K – 10K – 5K) ÷ 100K) × 100 = 85%
In this case, GRR is 85% — meaning the company retained 85% of its revenue from existing customers, before any upsells.
GRR vs NRR (Net Revenue Retention)
| Metric | Includes Expansions? | Focus | Common Benchmark |
|---|---|---|---|
| GRR | ❌ No | Revenue retention only | 85–95% |
| NRR | ✅ Yes | Revenue retention + growth | 100–130% |
A business can have low GRR but high NRR if expansion revenue offsets lost accounts — but GRR is still a critical warning metric.
Why Gross Revenue Retention Matters in B2B
- 🔍 Measures Revenue Stability – Shows how well you retain without growth levers
- 🧠 Reflects Customer Satisfaction – High GRR = high stickiness and loyalty
- 📊 Signals Product-Market Fit – Reveals how essential your product is to customers
- 📉 Flags Churn Risk – Declining GRR means customers are leaving or downgrading
- 🔁 Guides Retention Strategy – Helps identify when and where to intervene
- 📈 Supports Accurate Forecasting – Forms the baseline for long-term growth models
GRR Benchmarks by Company Type
| Company Type | GRR Benchmark |
|---|---|
| SMB SaaS | 80–90% |
| Mid-Market SaaS | 85–95% |
| Enterprise SaaS | 90–98% |
| Best-in-Class (Public) | 95%+ |
Many investors and boards expect GRR above 90%, especially in enterprise-focused SaaS.
How to Improve Gross Revenue Retention
- ✅ Onboard Effectively – Time-to-first-value must be fast and intuitive
- 🧠 Deliver Ongoing Value – Ensure customers are using your product continuously
- 🔍 Track Health Scores – Monitor logins, usage, engagement, and NPS
- 📞 Conduct Strategic Check-ins – Build relationships through CSM or account manager touchpoints
- 📊 Proactively Address Churn Risks – Use behavioral and historical data to predict problems
- 🔁 Refine Your Ideal Customer Profile (ICP) – Avoid poor-fit customers who are likely to churn
Use Case: How CUFinder Impacts GRR
CUFinder helps companies increase GRR by targeting and acquiring high-fit leads who are less likely to churn. With verified data, firmographic filters, and real-time validation, sales and marketing teams can focus on the accounts that match their best customers — improving long-term retention and revenue stability.
Cited Sources
- Wikipedia: Customer success
- Wikipedia: Customer relationship management
- Wikipedia: Revenue
- Wikipedia: Churn rate