Unlocking Net Revenue Retention
In this episode of The Orange Network, Rob Jones sits down with Shadab Khan, a Playbooks guru at RevPartners.
Shadab dives into the intricacies of net revenue retention within the HubSpot ecosystem.
Key Topics Covered:
What is Net Revenue Retention (NRR) and Why It Matters
Net Revenue Retention is a key metric that shows if a business is growing by keeping and expanding revenue from its existing customers or losing money through churn. It helps businesses understand if they’re keeping customers happy and getting more revenue from them over time, even after accounting for any customers lost. Shadab explains that companies with NRR over 100% are growing from their current customer base, which is a strong indicator of long-term success.
Recurring vs. Non-Recurring Revenue
Shadab explains the difference between recurring and non-recurring revenue. Recurring revenue comes from ongoing, repeatable services like subscriptions, while non-recurring revenue includes one-time charges like setup fees or penalties. Filtering out non-recurring revenue helps businesses focus on the consistent money they can expect to bring in month after month, which is essential for accurate reporting and growth analysis.
How Revenue Snapshots and Data Transformation Work
Shadab breaks down how to create "revenue snapshots," which are used to track key revenue metrics like NRR. This process involves gathering invoice data, filtering out non-recurring charges, and consolidating multiple invoices into a clean, easy-to-read format. Tools like QuickBooks and HubSpot are used to organize the data, making it easier to track how much revenue is coming in and from where.
The Role of Project Management and Tech in RevOps
Shadab highlights the importance of using the right tools and managing projects well in RevOps. Integrating finance systems like QuickBooks with CRMs like HubSpot allows businesses to streamline their operations and track revenue effectively. Good project management, supported by tools like ClickUp, is crucial to handle all the moving parts, from gathering data to calculating revenue metrics like NRR.
