Net Revenue Retention: Definition, How It Works, Example

What Is Net Revenue Retention?

By Keith Noonan – Updated Oct 12, 2025 at 11:40 PM

Key Points

Net revenue retention measures customer spending growth over time, aiming above 100% for success.
High net revenue retention means a company can grow by increasing existing customer spend.
Strong net revenue retention is crucial in industries like software, fostering ecosystem expansion.

In addition to attracting new customers, many companies strive to expand relationships with clients who are already purchasing their products and services. Net revenue retention has become one of the most important drivers of success for many businesses.

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Sales associate helping customer — Image source: Getty Images.

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Marketing Strategy

A plan that a business uses to reach potential customers and promote products or services that might be interesting to them.

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About the Author

Keith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.

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Keith Noonan has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike and Walmart. The Motley Fool has a disclosure policy.