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Resolved: Differences in NRR Formula from Intro course vs Intermediate Course
I noticed there's a difference in the NRR formula between the Intro course and the Intermediate course. From a quick search, the formula used in the Intermediate course seems to align more closely with standard industry definitions.
In contrast, the Intro course presents it as:
(Revenue in current period / Revenue in previous period) - 1
Could you clarify which version we should follow in this course? Or is there a specific nuance or context in the Intro course that explains the variation?
Thanks in advance!
In contrast, the Intro course presents it as:
(Revenue in current period / Revenue in previous period) - 1
Could you clarify which version we should follow in this course? Or is there a specific nuance or context in the Intro course that explains the variation?
Thanks in advance!
1 answers ( 1 marked as helpful)
Hi David,
Thanks for the question. The correct formula should be
NRR = (Revenue from existing customers in the current period / Revenue from the same customers in the previous period) * 100.
Now, both the courses are aligned. Thanks for the pointers. However, please note that the revenue should be from the same customers, in both the periods.
Regards,
Sudhir
Thanks for the question. The correct formula should be
NRR = (Revenue from existing customers in the current period / Revenue from the same customers in the previous period) * 100.
Now, both the courses are aligned. Thanks for the pointers. However, please note that the revenue should be from the same customers, in both the periods.
Regards,
Sudhir