Declining Net Revenue Retention (NRR) for Saas companies

ocean tunnel wave

Nothing is lost

Like the Ocean Circulation, models and predictions are not always reliable but on the Internet the news is that there is less growth. Not in amount of customers but existing customers buying less. Overall NRR is going down.

a large group of people holding up signs

What is the cause?

The main reason(s) for a lower NRR is probably that many customers become more critical when it comes to their solutions and all the features it offers. The once “cheap” whistles and bells are now expensive addons. In economical downtime (in NL we now officially have a recession) customers focus more on value for money.

Another reason could be market saturation and extreme competition. 

Take a look ate the no-code smart sheet offerings. Companies like: Baserow, Airtable, Jetadmin, Google Appsheet all compete in the same market.

a close up of a network switch box

What can be done

Like in the SaaS business the same happens with the hyperscalers. Customers avoid the expensive addons and focus on the core features and value. Some companies even take their infrastructure in their own hands.

It’s clear that shopping for cheaper alternatives is one way to go. If people are less willing to upsell it might be a price issue. We all know cloud pricing has gone up for a while.

disposable cup filled with milk and ice

How can we help?

We have been anticipating this NRR situation by bringing fully managed cloud to every location for a lower price. Yes, your own servers fully managed for a great price with most of the same cloud features you are used to.

Just search on the Internet and find stories about companies slashing their bill with 50% taking control back. Some well known SaaS names have joined the party and some SaaS companies even offer self hosted.

SaaS overview

Download our SaaS PDF to see what we can do for your SaaS company.

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