Net Dollar Retention (NDR), or Net Revenue Retention (NRR), measures the percentage of recurring revenue retained from existing customers over a specific period, including upgrades, downgrades, and churn. It indicates business growth or decline, with >100% signifying that expansion revenue exceeds churn.
Key Aspects of Net Dollar Retention:
Definition: Measures how well a business retains and grows revenue from its current customer base.
Formula:
.
Significance: A critical SaaS metric for assessing customer success, product value, and long-term sustainability.
Interpretation:
> 100%: Excellent. Indicates expansion revenue (upsells/cross-sells) is greater than churn.
< 100%: Warning sign. Indicates more revenue is being lost to churn and downgrades than is being gained.
Difference from Gross Retention: NDR includes expansion revenue, whereas Gross Dollar Retention (GDR) only measures revenue retained from the initial base without upgrades.
A.I. tutors may already outperform most human teachers, but they also make shortcuts tempting and can hinder genuine exploration. We need to set aside A.I.-free time to read and explore independently, and encourage using A.I. tutors to question and probe one’s own understanding.
Moreover, we should place greater emphasis on in-person, tutorial-style teaching in which students debate, defend their views and are pushed to articulate their reasoning.
Gary MarcusCognitive scientist
Most of the impact has been negative; high schools and colleges are at a loss as to how to proceed now that term papers are no longer valid either as an evaluation or as a means to get students to think. Most other applications remain speculative.
Helen TonerA.I. policy researcher
Education was already due for a significant shake-up, so the need to adapt to new A.I. tools might be a blessing in disguise.
