At what seat size does your NRR reach escape velocity?
At what seat size does your NRR reach escape velocity?Crunching data from 1,785,478 users to identify the exact point where retention starts to skyrocketHey, Ruchin here! 👋 Welcome back to Toplyne Labs - Edition #4 A weekly digest that covers unique insights on what makes PLG businesses tick, what signals make for the best PQLs, what sales teams get right, what they get wrong, and the meaning of life… Go figure 🤷🏻♂️ This week we crunched data from over 1,785,478 teams across various categories of PLG tooling to find the exact point where Net Retention Rates (NRR) begin to hit escape velocity.
Let’s look at the data. Get your accounts to 10 or more seats
If you’re a PLG sales or account management team, you have one job - get your accounts to 10 seats or more and you have yourself a lifelong customer. Across inherently collaborative tools (unlike single-player tools), the value prop strengthens and grows with every subsequent user you add to your team. And often there’s a direct correlation between the # of users and long-term retention rates. But at what point do retention rates inflect?
Land and… *crickets*Collaborative tools - especially ones that have virality built into them can land and expand. While just “land” may get you many feet in many doors, what separates the best from the rest is the expansion motion. (Think: Datadog, Cloudflare, Snowflake, AWS) Beyond the tipping point of 10 users, these teams become your largest drivers of NRR. How do you nudge smaller teams into teams of 10+? You’d do this by
All of that sounds great in theory, but how the hell do I implement this? If you liked this post from Top of the Lyne, why not share it? |
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