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282 Emergency Podcast: "I told ya so. NRR is a growth metric"
Manage episode 298188767 series 1182004
This excellent Linkedin post from Ziv Peled, chief customer officer from AppsFlyer, shows a predictive relationship between NRR and future ARR. Specifically, the stat is 130% NRR predicts a 5X increase in ARR in 5 years when you add a 15% YoY growth in new bookings. The numbers Ziv also shared shows that NRR of 90% or even 100% related to single digital growth in ARR in 5 years.
I found this stat astounding.
Ziv posed a call to action that, as this stat reveals, increasing NRR should be a priority, and that the best way to increase NRR is to get all departments in our companies together on increasing NRR.
I don’t think bringing “all the departments together, and agree on the same goal - LONG TERM VALUE for your customers” is enough.
I believe companies should design a business model that prioritizes NRR growth so that “bringing all the departments together” as a unifying exercise is unnecessary. Because the business model itself prioritizes NRR.
Increasing NRR is function of business model innovation, not an alignment exercise.
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit helpingsells.substack.com
355 episodes
Manage episode 298188767 series 1182004
This excellent Linkedin post from Ziv Peled, chief customer officer from AppsFlyer, shows a predictive relationship between NRR and future ARR. Specifically, the stat is 130% NRR predicts a 5X increase in ARR in 5 years when you add a 15% YoY growth in new bookings. The numbers Ziv also shared shows that NRR of 90% or even 100% related to single digital growth in ARR in 5 years.
I found this stat astounding.
Ziv posed a call to action that, as this stat reveals, increasing NRR should be a priority, and that the best way to increase NRR is to get all departments in our companies together on increasing NRR.
I don’t think bringing “all the departments together, and agree on the same goal - LONG TERM VALUE for your customers” is enough.
I believe companies should design a business model that prioritizes NRR growth so that “bringing all the departments together” as a unifying exercise is unnecessary. Because the business model itself prioritizes NRR.
Increasing NRR is function of business model innovation, not an alignment exercise.
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit helpingsells.substack.com
355 episodes
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