The Hidden Dangers of Good Sales: Is Your Product Falling Short?

Name: The Hidden Dangers of Good Sales: Is Your Product Falling Short?
Uploaded: 2023-11-20T15:48:30+00:00
Duration: 33 s
Channel: Jason M. Lemkin
Description: In this segment, the speaker warns founders and customer‑success teams that focusing solely on Net Revenue Retention (NRR)—which captures upsells…

20 Nov 2023 · 1 min

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In this segment, the speaker warns founders and customer‑success teams that focusing solely on Net Revenue Retention (NRR)—which captures upsells, cross‑sells, and expansion—can conceal deeper problems. A strong NRR may mask a weak Gross Revenue Retention (GRR), indicating that while sales are effective, the product or service quality may be lacking. The speaker urges vigilance: high NRR should not be taken as a sign of overall health without also examining GRR and product robustness.

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like, you know, for most of us, we focus on NRR, net revenue retention. That includes upsells, cross-sells, expansion. A good sales team, you know, can really hide the sins of a bad product, right? So if you have a pretty good NRR but a not so good GRR, you know, you've got to be careful as a founder, as a CS team. That means that your ability to do business is very, very strong, and maybe your ability to service your customer is weak. Maybe Maybe your product is weak.