Resources
/
NDR Benchmarks
Net Dollar Retention Benchmarks
Net Dollar Retention (NDR) is the success metric of choice for high-performing customer success teams. Use this calculator to help you figure out what yours is!
To see where you fit in this list, use our net dollar retention calculator to quickly figure out whether or not your customer success team is growing!
What does the NDR benchmark table tell me?
The below table is a list of a number of high-growth companies and their respective net dollar retention rates. These figures have been collected from the IPO documents and are correct from the time at which they went public. Whilst these companies typically lean more towards enterprise customers, this data is universally helpful as it demonstrates what a high-performing customer success function looks like.
Many of these companies use a different term to denote NDR. Whilst this may seem irrelevant, it's helpful to see how this concept has been socialised within these companies.
What is Net Dollar Retention?
NDR examines the health of your existing customer base. However, instead of measuring retention through a potentially misleading base like number of accounts, it evaluates performance based on overall revenue value.
NDR takes into account churn (customers who have cancelled), contraction (downgrades or, if you charge based on use, any drops in usage), and expansion (upsells, or increases in usage).
What is the Net Dollar Retention Formula?
Whilst there are a few variations on this (typically, the formula is amended on a company-to-company basis), the NDR formula is:
