🤯The Mind-Blowing Impact of a 20% NDR Difference 🤯
You do not want to underestimate the importance of this metric!
Founders, the net dollar retention (NDR) shows the health and the growth
potential of your SaaS business!
Specifically, the NDR shows:
👉 How much growth you’re able to generate without acquiring any new customers
👉 How satisfied your existing customers are with the value exchange you’re
providing
Your NDR can be more than 100%, meaning your customers are deriving long-term
value from your company.
To truly understand the importance of NDR, let’s analyze three companies:
Company A | Present 120% NDR
Company B | Present 140% NDR
Company C | Present 160% NDR
In five years:
🤔 Company B will be 1.9x bigger than company A
🤔 Company C will be 4.2x bigger than company A
❗️Remember this:
Each marginal 20% of NDR is a doubling of company ARR in 5 years.
Take care of increasing your NDR to the max – it pays off in the long run.
I Help SaaS Founders Scale Quickly - Dan Martell
#SaaS #B2B #Founders #Entrepreneurship #Growth
Originally posted by Dan Martell on LinkedIn
link: linkedin.com/in/dmartell
You do not want to underestimate the importance of this metric!
Founders, the net dollar retention (NDR) shows the health and the growth
potential of your SaaS business!
Specifically, the NDR shows:
👉 How much growth you’re able to generate without acquiring any new customers
👉 How satisfied your existing customers are with the value exchange you’re
providing
Your NDR can be more than 100%, meaning your customers are deriving long-term
value from your company.
To truly understand the importance of NDR, let’s analyze three companies:
Company A | Present 120% NDR
Company B | Present 140% NDR
Company C | Present 160% NDR
In five years:
🤔 Company B will be 1.9x bigger than company A
🤔 Company C will be 4.2x bigger than company A
❗️Remember this:
Each marginal 20% of NDR is a doubling of company ARR in 5 years.
Take care of increasing your NDR to the max – it pays off in the long run.
I Help SaaS Founders Scale Quickly - Dan Martell
#SaaS #B2B #Founders #Entrepreneurship #Growth
Originally posted by Dan Martell on LinkedIn
link: linkedin.com/in/dmartell
