Financial Glossary

Net Dollar Retention (NDR)

Definition

NDR is a metric used to measure the revenue growth or loss from existing customers over a given period, excluding new customer revenue.

Related Services

Customer success management, financial analysis, and subscription analytics help businesses monitor and optimize NDR by improving retention and reducing churn.

Problem and Application

High NDR indicates strong customer retention and expansion, while low NDR suggests problems with customer satisfaction or upselling.

Conclusion

NDR is a crucial metric for SaaS and subscription-based businesses, as it directly reflects customer satisfaction and revenue growth from the existing customer base.