Gross retention

Definition

The share of last year's revenue you keep before any expansion.

Why It Matters

It is the harder half of the retention question and the half a seller volunteers last. Net retention can look healthy while the base is leaking, because a handful of customers buying more covers a steady stream leaving. This one cannot hide that, since it counts only what stayed. Ask for it by cohort rather than in total: an average across a growing customer base is flattered by the newest customers, who have not had time to leave yet.

In numbers: A business at 95% net retention and 80% gross retention is losing a fifth of its base a year and buying the difference back through upsells.