CMOs: Stop Undervaluing Net Revenue Retention

C-Suite Sales & Marketing Perspectives

💡 Dave Rigotti, Co-Founder and Head of Marketing at Inflection.io, underscores the critical significance of net revenue retention (NRR) and advocates for a shift in focus among marketers toward this metric. He states that tapping into revenue streams from existing customers is more straightforward and cost-efficient.💡

He emphasizes that marketing should focus on customer expansions and driving product usage to improve NRR. He also advocates channeling greater attention and resources into customer marketing efforts and enhancing customer engagement with the product. By doing so, marketers can substantially enhance NRR and consequently drive revenue growth.

“CEOs need to have a real conversation with their CMOs about how important NRR is. CEOs need to change the metrics for marketing that marketing signs up for NRR because once you get to 100% NRR, you start to become unstoppable. It's really hard for even macro-economic headwinds to slow you down.” - Dave Rigotti

Net revenue retention (NRR) measures revenue growth from existing customers, which is critical for SaaS companies aiming for over 100% NRR. CEOs and CMOs should prioritize NRR, focusing on customer expansions and tailored onboarding to boost revenue. By emphasizing customer-centric strategies, marketing can drive NRR and sustainable growth, prompting dialogue between leadership for dedicated plans.

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