Net Customer Base Expansion = (Expansion ARR - Churned ARR) which helps SaaS companies to understand how the existing customer base is impacting ARR growth excluding the impact of new logo customer ARR.
Why not just use Net Revenue Retention? CAC and Growth dive deep into this SaaS metric including:
- Calculation formula for Net Customer Base Expansion (NCBE)
- How is NCBE different from Net Revenue Retention (NRR)
- What is CAC's definition of lazy NRR
- Cohort vs Segment Calculations - what is the difference
- What is a good Net Customer Base Expansion Rate
- When and where does the Net Customer Base Expansion provide the most value
If you are responsible for impacting how ARR grows at existing customers in a B2B SaaS company - this episode may provides some new insights and maybe a new metric to add to your SaaS Metrics glossary!
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