Net Revenue Retention Strategy 2023

Introduction

PeakSpan Capital and Ibbaka are conducting a survey to better understand current and go-forward expectations for Net Revenue or Net Dollar Retention (NDR or NRR) and the actions entrepreneurs take to drive improvement. The information will be used to help companies benchmark and adopt best practices.

NDR is the increase in revenue from existing customers (Gross Dollar Retention), less customer churn, and reduction in revenue from existing customers.

PeakSpan Capital is a leading growth equity firm based in New York City and San Mateo. Having partnered with over 70+ high-growth B2B software businesses and with $1.5B+ in AUM, PeakSpan’s mission is to be the partner of choice for growth-stage entrepreneurial teams building amazing software targeted at business buyers of all sizes. PeakSpan combines deep domain expertise within a select number of themes with a homegrown, proprietary technology platform providing visibility into company and market performance to help disruptive entrepreneurs drive resilient, risk-adjusted value creation. Click here to learn more.

Ibbaka is the provider of the Ibbaka Valio pricing and customer value management platform. It supports packaging and pricing optimization to achieve key growth metrics.

Contact info@ibbaka.com for more information.

All results will be kept confidential and will not be shared. If you are interested in receiving a summary of the report, please provide your email at the end of the survey.

Question Title

* 1. What do you target? (Pick all that apply)

B2B (Small and Medium Businesses)

B2B (Enterprise)

B2B (All)

B2B (Business Professionals)

B2G (Government)

B2C

M2M (Machine to Machine)

Other (please specify)

None of the above

Question Title

* 2. What is your primary growth motion (most companies have a lead growth motion and many have one or two additional supporting growth motions)

Product Led Growth

Sales Led Growth

Service Led Growth

Partner Led Growth

Community Led Growth

Relationship Led Growth

Other (please specify)

Question Title

* 3. If you have a supporting growth motion please select.

Product Led Growth

Sales Led Growth

Service Led Growth

Partner Led Growth

Community Led Growth

Relationship Led Growth

No supporting sales motion

Question Title

* 4. What is your package architecture?

One Big Package

Independent Modules (two or more)

Platform with Extensions

Multisided Market Platform

Good Better Best - Three Packages

Good Better Best - Free +Three Packages

Good Better Best - Three Packages + Enterprise

Good Better Best - Free +Three Packages + Enterprise

API Integrator

Data Feed Manager

Other (please specify)

None of the above

Question Title

* 5. What was your NDR in the previous fiscal year?

> 130%

120% to 130%

110% to 119%

105% to 109%

100% to 104%

95% to 99%

90% to 94%

<90%

None of the above

Question Title

* 6. What is your target NDR for the current fiscal year?

> 130%

120% to 130%

110% to 119%

105% to 109%

100% to 104%

95% to 99%

90% to 94%

< 90%

None of the above

Question Title

* 7. Order the six NDR levers by importance to your NDR strategy.

Reduce Churn

N/A

Grow In Package

N/A

Increase Upsell

N/A

Reduce Shrinkage in Package

N/A

Increase Cross Sell

N/A

Reduce Downsell

N/A

Question Title

* 8. How confident are you that you will meet your NDR target this year?

100%

95% - 99%

80% to 94%

60% to 79%

40% to 59%

20% to 39%

1% to 19%

Question Title

* 9. Who is responsible for achieving NDR targets?

Sales

Customer Success

Sales and Customer Success

Dedicated Team

Not Clear

Other (please specify)

Question Title

* 10. What SaaS vertical do you operate in?

Collaboration and Team

Communication (Video Conferencing)

CRM

Cybersecurity

Data Analytics and Management

DAM and Content Management

Developer Tools

Edtech

Fintech

General AI

Industry Specific (Please Describe in Comment)

Martech

Supply and Logistics

Other (please specify)

Question Title

* 11. What pricing metrics do you use? (Check all that apply)

Per user

Per Active User

Per site

Customer size measured in revenues

Customer size measured in assets

Customer size measured in number of employees

Number of transactions

Value of transactions

Input tokens

Output tokens

Devices covered

Nodes connected

Usage metric

Value path completion metric

Other (please specify)

Question Title

* 12. What is your role?

Board

CEO

CFO

CRO

Marketing Lead

Sales Lead

Product Lead

Technology Lead

Customer Success Lead

Finance

Marketing

Sales

Product

Technology

Customer Success

Consultant

Coach or Mentor

Investor (Not on Board)

Other (please specify)

Question Title

* 13. What is your company's Annual Recurring Revenue (12 month forward)

> $1 Billion

$500 - 999 Million

$200 - 499 Million

$100 - 199 Million

$50 - 100 Million

$20 - 49 Million

$10 - 19 Million

$5 - 9 Million

$3 - 4 Million

$ 1 - 2 Million

< $1 Million

Question Title

* 14. Professional services revenues are what percent of subscription revenues?

> 200%

100 - 200%

50% - 99%

30% - 49%

20% to 29%

10% - 19%

5% - 9%

1% - 4%

Question Title

* 15. What ideas or comments do you have on NDR? You can ask questions too.

Question Title

* 16. If you would like a report on this survey, please provide your business email.

Name

Company

Country

Email Address