Net Dollar/Revenue Retention research

NDR/NRR Proper

Lengthy rundown on a ton of the “Emerson” metrics. Well worth the time invested. Will be reading it again.

They do a ton of time bashing LTV, and I agree with basically all of their points. That led me to really question whether we should hang out our shingle around LTV or not. I’d like to share more details on that later, but the short version is that I think we can say “do LTV, but in a non-stupid way” rather than throwing out the conceptual foothold entirely. Very open to your thoughts on that.

Expansion Revenue

Decent overview. The strategies are weaksauce in terms of “how can I tell if it’s working or not?”

More good 101-level info



One point I’d make in disagreement with all of the above: you don’t want to measure growth of New Expansion Revenue from one month to the next; you want to measure it over the cohort lifetime. Same rationale here as “don’t use net churn, use lifetime churn”.

I wonder how games (especially free2play) model expansion revenue. I bet it’s a lot smarter than Enterprise/SaaS

Survival Curves!

... with this excellent video accompaniment:

... which links to other good LTV-related resources:

User Profitability / Lifetime Revenue

Haven’t fully read yet, but skimmed and looked promising

Also, it was published by a SaaS company with a pretty interesting value prop of its own:

A couple good LTV-related points here

“It’s far less expensive for a business to retain customers than it is to acquire new ones. Yet most companies continue to invest significantly more money into customer acquisition than retention efforts. As a result, they do acquire new customers, but they lose most of them along the way.”

We can probably learn a lot from the niche of ecommerce LTV-boosting, like: