NRR GROWTH LEVER CHOICES One cannot focus on improving all six NRR growth factors at the same 琀椀me. In the opening sec琀椀on on ‘Ac琀椀ons to take to improve NRR’ we proposed an order of opera琀椀ons for these levers. 1. Address churn 2. Manage discoun琀椀ng 3. Design pricing metrics for growth in package 4. Design packaging to encourage upsell 5. Add cross-sell opportuni琀椀es Let’s look at the data and see what companies are actually priori琀椀zing. Beginning with the three posi琀椀ve factors, let’s work through all the alterna琀椀ves. → The highest-performing companies have this pa琀琀ern. (Seen with 30 companies.) + Increase upsell + Grow in package + Increase cross-sell — Reduce churn — Reduce down-sell — Reduce shrinkage in package This pa琀琀ern is also associated with high performance. → (Seen with 91 companies.) + Grow in package + Increase upsell — Reduce churn + Increase cross-sell — Reduce shrinkage in package — Reduce down-sell PeakSpan & Ibbaka Net Revenue Reten琀椀on Research Report September 2023 35
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