Imagine you run a recurring revenue business in which customers spend more money as time goes on.
In other words, customer cohorts spend more in year two than they do in year one. Such a business is extremely capital efficient and is said to have a net dollar retention rate of over 100%.
Net Dollar Retention (NDR) is a key performance indicator used to track how much revenue a company retains after accounting for customer churn.
NDR is one of the easiest SaaS metrics to calculate.
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