Renewals · GRR and NRR

The Renewals tab treats renewal as a pipeline of its own, with Stage, Likelihood, Baseline, Outcome and the Difference between the last two. At the top, GRR and NRR for the last twelve months summarize how much of your revenue you kept and how much it grew inside the base you already had.

Selling again to someone who is already a customer is not the same as selling to someone who never was, and mixing the two into a single pipeline erases both facts. The Renewals tab separates them: every expiring term has its own stage, likelihood and outcome, and retention stops being a number somebody works out in a spreadsheet at the end of the quarter.

What each column means

• Term end: the date the current contract runs out. It is what you prioritize the queue by.
• Stage: where the renewal sits in the process. When no stage is recorded, the screen shows the status instead.
• Likelihood: the band of probability of renewing, the equivalent of forecast in the sales pipeline.
• Baseline: the MRR that was at risk at the start of the term, that is, what you have to lose.
• Outcome: the MRR left after the decision. While the renewal is undecided, a dash appears.
• Difference: Outcome minus Baseline. Positive is expansion, negative is contraction and comes highlighted in red.

GRR and NRR at the top

The two cards above the table summarize the last twelve months up to today. GRR is gross revenue retention: of the revenue that was at risk, how much survived what was lost and what shrank. It can never exceed 100 percent, because expansion is left out. NRR is net revenue retention: the same arithmetic with expansion added, which is why it can go above 100 percent. NRR above 100 is the sign that the base grows on its own, even with no new customers.

Only decided renewals enter the calculation. A renewal still open neither improves nor worsens the indicators, because counting something that could still turn into a loss as retained would be inventing a good number.

How to work the queue

1. Open SaaS from the menu and go to the Renewals tab.
2. Sort in your head by the nearest Term end and start there.
3. Read the Likelihood next to the Baseline: a large renewal with low likelihood is the one that deserves your day, not the small one with high likelihood.
4. Click the date under Term end to open that subscription's Amendment series and understand the history before you propose anything.
5. Cross-check with the Health tab: a renewal on an at risk account needs a recovery plan before it needs a commercial proposal.

Limits and common questions

• The screen says No renewal recorded: no terms have been loaded for your organization.
• GRR and NRR show a dash: there are no decided renewals in the period, so there is no base for the calculation.
• GRR higher than NRR does not happen: if NRR came out below GRR, contraction outweighed expansion, and it is worth checking the outcomes.
• This tab is read only. Deciding a renewal, moving the stage or recording the outcome is not done from this screen.
• The indicator period is fixed at twelve months up to today.

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