Investor question 20 of 50 · Unit economics & retention
“What's your net revenue retention?”
Short answer: the investor is really asking do existing customers grow? Answer in three steps: (1) give GRR and NRR over 12 months; (2) explain the gap between them (expansion); (3) compare with your segment's typical range.
What they're really asking
Do existing customers grow? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.
How to answer, step by step
- Give GRR and NRR over 12 months.
- Explain the gap between them (expansion).
- Compare with your segment's typical range.
An example answer
GRR is about 75% and NRR about 86%. Both are below where we want them; retention is our top operational priority.
Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.
The answer that loses trust
Avoid
Confusing logo retention with revenue retention.
Where the proof lives
Before the meeting, find the number behind your answer. In our workbooks it lives in: NRR & GRR. If you can open that tab and point to it, the follow-up question is easy.