What Is Net Dollar Retention and Why Is It Important?

net dollar retention

Net Dollar Retention (NDR) is a critical metric that measures a company’s ability to retain and expand revenue from existing customers. It provides valuable insights into the growth and profitability of a business by examining the overall revenue generated from the customer base. Understanding NDR is essential for businesses as it helps identify opportunities for revenue growth, optimize customer retention strategies, and drive long-term success.

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