Table 12. Segment-Specific GRR Baselines
| Customer segment | Average ARR range | Typical contract term | Target top-quartile GRR | Median acceptable GRR | Critical distress threshold |
|---|---|---|---|---|---|
| Enterprise | \$100,000 to \$1M+ | 2 to 5 years | $\ge 95\%$ | $90\% - 94\%$ | $< 88\%$ |
| Mid-Market | \$25,000 to \$100,000 | 1 to 2 years | $\ge 90\%$ | $85\% - 89\%$ | $< 82\%$ |
| SMB / High-Velocity | \$2,000 to \$25,000 | Annual / Monthly | $\ge 82\%$ | $75\% - 81\%$ | $< 70\%$ |
| Micro-SMB / Consumer | < \$2,000 | Monthly rolling | $\ge 70\%$ | $60\% - 69\%$ | $< 55\%$ |
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Source: Table from this essay. Sources and interpretation are given in the article.

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Growth that compounds
What is gross revenue retention?
Gross revenue retention measures preserved recurring revenue without expansion. Isolate contraction and churn before expansion masks cohort decay.
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