Startup Funding Espresso -- Net Dollar Retention as a Metric
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are many metrics for determining how well your SaaS business is doing. Net dollar retention is a key metric that indicates the health of the business. To calculate it, take the revenue at the beginning of the month, plus upgrades, minus downgrades and churn. Divide this by the revenue at the beginning of the month.\xa0 If the formula is above 100%, then your business is growing. If it\u2019s below 100%, then it\u2019s shrinking. The key to a high net dollar retention rate is strong customer service. Low net dollar retention rate comes from poor service. Market-leading companies often have a net dollar retention rate well above 100%.\xa0 Know your numbers and use them to guide your execution. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of