Net Retention as a Discipline
Net retention in the hands of marketing and customer success.
SaaS companies have long used net retention as a core metric — the percentage of recurring revenue a company retains from its existing customer base over a period, typically a year. It accounts for both churn (cancellations) and expansion (upsells and increased usage).
Marketing and Customer Success both play essential roles in net retention.
Marketing contributes by acquiring the right customers — those who are a genuine fit for the product and more likely to stick around. Effective marketing attracts customers who truly need the product, understand its value, and are more likely to renew or upgrade to higher tiers.
Customer Success ensures customers actually use the product and achieve their desired outcomes. Through ongoing support and guidance, CS helps customers navigate the product and overcome challenges — improving satisfaction and loyalty, and lifting net retention.
How They Work Together
Marketing and Customer Success improve net retention by aligning around the customer:
- Understanding the customer journey. Both teams need a deep grasp of the end-to-end journey, from acquisition to renewal — identifying areas to improve and creating targeted campaigns that address real needs and pain points.
- Collaborating on onboarding. Effective onboarding drives success and retention. The two teams can build a seamless onboarding experience that sets customers up to win and get the most from the product.
- Aligning messaging and communications. Consistent, cohesive messaging across the journey builds trust and credibility — and keeps support coherent over time.
By working together, marketing and customer success ensure customers are onboarded, supported, and engaged throughout their journey — driving higher satisfaction, loyalty, and retention.