The six NRR factors Six factors determine NRR, three posi琀椀ve and three nega琀椀ve. The posi琀椀ve factors are •Grow in package •Upsell across packages (for example, from Good to Be琀琀er or Be琀琀er to Best in a GBB style packaging) •Cross-sell from one product line to another The nega琀椀ve factors are •Customer churn •Shrink in package •Downsell across packages (from Best to Be琀琀er or Be琀琀er to Good) These are some琀椀mes referred to as the NRR levers, as one can pull di昀昀erent levers to improve NRR. One can achieve breakthrough NRR performance in di昀昀erent ways. Some companies will have rela琀椀vely high churn but s琀椀ll have good NRR numbers as they can grow the customers they keep through a combina琀椀on of growing in the package, upselling, and cross-selling. Other companies will focus on reducing the nega琀椀ve factors: reducing churn, limi琀椀ng shrinkage in package,s and discouraging down sell from more expensive packages to lower priced packages. Figure 1: The Six NRR Factors PeakSpan & Ibbaka Net Revenue Reten琀椀on Research Report September 2023 8