How To Calculate Net Revenue Retention in Zendesk | Arithmix

Calculating net revenue retention is an important metric for any business that wants to understand how much revenue it is retaining from its existing customers. This metric is particularly valuable for subscription-based businesses, as it helps them understand how much revenue they are generating from their existing customer base, and how much they are losing due to customer churn.

What Is Net Revenue Retention?

Net revenue retention is a metric that measures the amount of revenue a business is retaining from its existing customers over a given period of time. It takes into account the revenue generated from existing customers at the beginning of the period, as well as any revenue generated from upsells, cross-sells, and renewals during the period. It also takes into account any revenue lost due to customer churn during the period.

Net revenue retention is calculated by dividing the total revenue generated from existing customers during the period by the total revenue generated from those same customers at the beginning of the period. The resulting percentage represents the net revenue retention rate.

When Is It Valuable To Calculate Net Revenue Retention?

Calculating net revenue retention is valuable for any business that wants to understand how much revenue it is retaining from its existing customers. This metric is particularly valuable for subscription-based businesses, as it helps them understand how much revenue they are generating from their existing customer base, and how much they are losing due to customer churn.

By calculating net revenue retention, businesses can identify areas where they can improve customer retention and increase revenue. For example, if a business has a low net revenue retention rate, it may indicate that customers are not finding value in the product or service, or that the business is not providing adequate customer support. By addressing these issues, the business can improve customer retention and increase revenue.

Overall, net revenue retention is a valuable metric for any business that wants to understand how much revenue it is retaining from its existing customers, and how it can improve customer retention to increase revenue.

How Do You Calculate Net Revenue Retention in Zendesk

Zendesk itself isn’t naturally geared towards letting you calculate complex metrics like Net Revenue Retention. As an alternative, teams typically use products like Arithmix to import data from Zendesk and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Zendesk, combine it with data from other systems, and create calculations like Net Revenue Retention.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Net Revenue Retention in Arithmix

Calculating metrics like Net Revenue Retention is simple in Arithmix. Once you've created your free account, you’ll be able to import your Zendesk data, and use it to create natural language formulas for metrics like Net Revenue Retention.

Arithmix is designed to give you the power to build any calculations you want on top of your Zendesk data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.