Net Revenue Retention: The New Frontier for Enterprise Value Creation
Net Revenue Retention (NRR) has come under pressure as budgets tighten, decision cycles slow, and customers demand more value from existing vendors. With new logo acquisition becoming increasingly difficult in this environment, NRR stands out as the single most reliable driver of enterprise value creation in today’s climate of higher borrowing costs and geopolitical uncertainty.
Top NRR Performers Are Pulling Away. The Rest Are Playing Catch-Up.
What the Data Shows
Our analysis of 300+ subscription businesses shows average NRR has dropped 360 bps since early 2023 from 110.8% to 107.2%, a market-wide reset. Yet ~30% of overachieving companies consistently outperform peers by combining:
Customer engagement strategies that accelerate adoption & usage
Customer Intelligence platforms embedded into core workflows
Two-stage commercial engines (ie. Land & Expand)
Price adjustments defended by value achievement
Strategic AI integration that enhances customer workflows
Why this Matters for PE Sponsors
Retention and expansion will account for ~67% of new bookings in 2025. Protecting and expanding enterprise value requires operating model discipline, not discounting or product reinvention.
“We used to think of retention as a defensive motion, but this year it’s become the single biggest driver of value creation. By shifting coverage and codifying expansion plays, we’ve seen more predictability in NRR—and that’s been critical in maintaining investor confidence around enterprise value.”
- CRO, $200M+ PE-backed software company
What Your PortCos can do Now
Shift the operating model—not just the messaging:
Segmentation & Coverage Realignment – shifting CSM focus to high-potential accounts, using digital/pooled models for the long tail, with a broader shift toward commercially oriented Account Management roles.
Playbook-Driven Expansion – embedding structured cross-sell/upsell plays into the operating rhythm, backed by RevOps and marketing.
Data-Enabled Renewal Discipline – using churn risk, usage, and value metrics to bring predictability to retention.
Customer Journey Alignment – coordinating Sales, CS, Product, and Marketing to deliver seamless handoffs that accelerate adoption and expansion.
WayforgeTM by SBI: The Growth Intelligence Platform for Private Equity
For operating partners, deal partners, and portfolio leaders, one metric matters most: Return on Go-to-Market (RoGTM).
Wayforge is SBI’s AI-driven growth intelligence platform that helps PE firms deliver higher RoGTM across the investment lifecycle:
Pre-close: Accelerate diligence with faster visibility into GTM risk and upside
Post-close: Build aligned, execution-ready value creation plans
Pre-exit: Strengthen your equity story with commercial readiness signals
Powered by 20+ years of SBI’s GTM expertise, Wayforge turns commercial data into confident decisions, faster execution, and measurable growth. Whether you’re evaluating fit, optimizing the model, or preparing for exit, Wayforge gives you the facts and the edge.
