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 revenue retention measures the percentage of recurring revenue from current users, reflecting how well your company retains and expands its user base.

Retention is a critical metric; it shows how many customers continue to pay over time, indicating the product's value to them.

For early-stage B2B SaaS companies, aiming for a net dollar retention of 125% to 150% is ideal, while mature companies should target around 110% to 120%.

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

Tracking customer retention is essential; it helps you understand how many users continue to engage with your product over time, which is a key indicator of success.

Measuring revenue churn is critical for subscription-based businesses, as it helps you understand how many customers are leaving your service.

Visualizing retention through stacked cohorts can illustrate the long-term value of customers and the health of your business. High retention businesses can still grow revenue even when no new customers are signed up, as they continuously add layers of revenue over time.

Pay attention to customer renewal rates rather than just churn rates, as they provide a clearer picture of customer retention.