282 Emergency Podcast: "I told ya so. NRR is a growth metric"

This excellent Linkedin post from Ziv Peled, chief customer officer from AppsFlyer, shows a predictive relationship between NRR and future ARR. Specifically, the stat is 130% NRR predicts a 5X increase in ARR in 5 years when you add a 15% YoY growth in new bookings. The numbers Ziv also shared shows that NRR of 90% or even 100% related to single digital growth in ARR in 5 years.

I found this stat astounding.

Ziv posed a call to action that, as this stat reveals, increasing NRR should be a priority, and that the best way to increase NRR is to get all departments in our companies together on increasing NRR.

I don’t think bringing “all the departments together, and agree on the same goal - LONG TERM VALUE for your customers” is enough.

I believe companies should design a business model that prioritizes NRR growth so that “bringing all the departments together” as a unifying exercise is unnecessary. Because the business model itself prioritizes NRR.

Increasing NRR is function of business model innovation, not an alignment exercise.