We assume that you have a way to identify which customer is due for renewal and when is their renewal and you are tracking the renewal process(Opportunity) something similar to the below example. 

To calculate Retention Rates in Gainsight, We should use the Data Designer feature. Click here to know more about Data Designer.

Calculating Net Revenue Retention Rate:

Step 1:

Using Data Designer, fetch Renewal and Expansion Related Information from Opportunity along with their Close Dates and Stages. 

Step 2:

Next step is to get the First day of the Quarter for the Close Date of Opportunity. In case if you want to get Retention Rates by Month, You need to get the First Day of the Month for the Close Date of Opportunity.

Step 3:

Get the SUM of Amount of all the Opportunities, SUM of Current ARR  and Total Number of Accounts per Quarter(Grouping by Quarter). 

Labels: 

SUM of Amount → Total Renewable ARR

Count of Accounts → Total Renewable Accounts

SUM of Current ARR → Total Current ARR

.

Step 4:

Get the SUM of Amount, Count of Accounts from all the Closed Won Opportunities

Labels:

SUM of Amount → Total Renewed ARR

Count of Accounts → Total Renewed Accounts

Filter:

Stage = Closed Won

Step 5:

Get the SUM of Amount, Count of Accounts from all the Closed Lost Opportunities

Labels:

SUM of Amount → Total Lost ARR

Count of Accounts → Total Lost Accounts

Filter:

Stage = Closed Lost

Step 6:

Merge(Left Join) Total Renewable Information with Total Renewed Information on the First Day of the Quarter field.

Step 7:

Merge(Left Join) the data from the above step with Total Lost Information on the First Day of the Quarter field.

Step 8:

Calculate the Net Revenue Retention Rate using Calculate field.

Here is the formula:

1. If you are using the Amount field for (Renewal ARR + Expansion ARR), then use the below formula.

NRR = (Total Renewed ARR/Total Current ARR)*100

2. If you have different fields for Renewal ARR and Expansion ARR, then use the below formula.

NRR = ((Total Renewed ARR + Total Expansion ARR)/Total Current ARR)*100

In the above screenshots, we used the Amount field for (Renewal ARR + Expansion ARR). 

Calculating Logo Retention Rate:

In the Step 8, you can also add one more calculated field for Logo Retention.

Here is the formula:

Logo Retention Rate = (Total Renewed Accounts/Total Renewable Accounts)*100

As we do not have enough data in our local demo instance, the report is not showing data for all the quarters.

Calculating Gross Revenue Retention Rate:

You can follow the above steps for GRR as well but in the first step, fetch only Renewal Opportunities. You need to exclude Expansion Opportunities and Expansion ARR.

Here is the formula:

GRR = (Total Renewed ARR /Total Current ARR)*100

Total Renewed ARR is just Renewal ARR. Expansion ARR is not included here.

Note: This will be enhanced soon to include “Logo retention Rates”.