A net dollar retention above 100% indicates that your customer cohorts are growing over time, while below 100% suggests they are shrinking, necessitating more effort to acquire new customers.

Net dollar retention is a key metric for B2B startups, reflecting the revenue gained from existing customers after accounting for losses due to churn.

Software businesses should target high margins, ideally around 80% to 90%, to ensure sustainability and profitability.

As companies mature, they should aim for a gross margin of at least 80%, with R&D expenses dropping significantly as they scale.

Retention and upsell are critical metrics that significantly impact revenue multiples; companies with high retention rates tend to have higher valuations.

Setting a metric and goal for your team allows for data-driven operations, where you can monitor progress daily and adjust strategies accordingly. A low retention rate, like 6.25% after four weeks, indicates poor product-market fit; aim for at least 20-30%.

The number one thing for consumer brands is to achieve a retention rate of 20 or above, which is the bare minimum to build a successful consumer brand.

For B2B companies, revenue should be the primary metric tracked, as it directly reflects the company's success.

The growth rate needed for meaningful growth varies by product type; enterprise B2B companies may need fewer customers than consumer goods companies, which require higher volumes.