Table 12 Sept 2026From “What is net revenue retention?”

Which common reporting practices undermine the operational validity of NRR?

Table 1Which common reporting practices undermine the operational validity of NRR?

Practice	Why it misleads	Operational remedy
Reporting NRR without GRR	Severe churn is masked by heavy expansion in top accounts	Always report GRR and NRR as a paired disclosure
Conflating logo retention with revenue retention	90% logo retention can coexist with 70% revenue retention if large accounts contract	Publish logo survival rates and revenue retention side by side
Treating unbilled usage as expansion	Volatile consumption spikes are booked as permanent annual run-rate	Count only recurring baseline commitments in ARR definitions
Omitting cost to serve in expansion accounts	High NRR can destroy margin if expanding accounts require massive custom engineering	Measure contribution margin retention beside top-line NRR
Shifting cohort definitions between periods	Inconsistent inclusion rules make historical comparisons meaningless	Lock cohort criteria in a formal data schema

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Source: Table from this essay. Sources and interpretation are given in the article.

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From the essay

Growth that compounds

What is net revenue retention?

Net revenue retention measures cohort revenue expansion minus churn and contraction. Isolate price hikes from volume and usage growth.

2 Sept 2026

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Isoglu, S. (2026). Which common reporting practices undermine the operational validity of NRR? [Table]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-what-is-nrr-fig02/

BibTeX

@misc{isoglu-2026-what-is-nrr-fig02,
  author = {Isoglu, Sinan},
  title = {{Which common reporting practices undermine the operational validity of NRR?}},
  year = {2026},
  howpublished = {Table 1, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-what-is-nrr-fig02/},
  note = {From the essay {What is net revenue retention?}}
}

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