Gross Dollar Retention

Gross dollar retention is a metric that is used to measure the amount of revenue that a company is able to retain from its existing customers over a given period of time. This metric is calculated by taking the total revenue generated from a company's existing customers in a given period and dividing it by the total revenue generated from those customers in the previous period. The resulting figure is expressed as a percentage, and it provides a useful way for a company to gauge the effectiveness of its customer retention efforts. A high gross dollar retention rate typically indicates that a company is doing a good job of retaining its existing customers, while a low gross dollar retention rate may indicate that the company is struggling to retain its customers and may need to implement new strategies to improve its customer retention.

Definition

Definition

$GDR(\Delta t)={\frac {Churn+Downsell}{bARR{\overline {x}}+aARR{\overline {x}}}}$

Standardization Status

Request for Comments (RFC): 22/0011 - Gross Dollar Retention (GDR)
Type: metric
Version: 0.9
Status:proposal