Grow Revenue Smarter With Net Dollar Retention

Every company wants to grow year after year. We see it everywhere, in the stock market, in countries’ GDP reports, and in business performance metrics. Companies are no different.

If you’re not growing, this can reduce investment you might get. It can lead to stagnation in your workforce and prevent innovation.

So, how can you keep growing year after year, without relying solely on new business?

The answer lies in your existing customer base.

What is Net Dollar Retention?

Net Dollar Retention (NDR) measures how much revenue you’re holding onto, and growing, from your existing customers.

Here’s how it works:

Let’s say you expect $1 million this year from your current customers. If, by the end of the year, you’ve only secured $900,000, your NDR is 90%. 

The best companies out there are hitting NDR rates of 120% or more. That means their customers aren’t just sticking around, they’re spending 20% more at each renewal. Maybe they’re buying additional products, increasing usage, or upgrading to premium features.

This means you’re growing without chasing new business. You’re locking in more revenue with less effort, boosting profit margins, and creating a natural path for business growth, all by focusing on customers who already know and trust your brand.

However, most companies aren’t tracking NDR properly.

Sure, everyone watches new business numbers like a hawk. But if NDR isn’t measured, or worse, isn’t understood by your sales team, you’re leaving serious revenue on the table. Tracking NDR in Salesforce and ensuring your sales force (your people, not the platform) knows how critical it is can unlock growth you didn’t even realize was possible.

How to Increase NDR Year Over Year

Improving Net Dollar Retention requires a strategy that keeps customers coming back and spending more. Here’s how to make it happen:

Find Upsell and Cross-Sell Opportunities Before Renewal Hits

If you wait until renewal time comes around to suggest expanding an account,  you’ve already lost.

Your Customer Success Managers (CSMs) and Account Managers should know every inch of their customer accounts. Not just what’s been bought, but what hasn’t. This is called whitespace, and it’s where upsell and cross-sell potential lives.

Ask yourself:

• What products or services could this customer benefit from that they haven’t explored yet?
• Is their business growing, and are you helping them scale with the right tools?

The earlier you spot these gaps, the easier it is to close them. A tool like Plan2Prosper comes in handy here by helping teams stay focused on the bigger picture by turning vague account goals into clear, actionable steps. When everyone knows what needs to be done, and why, it’s easier to spot real opportunities and act on them early, rather than panicking when renewals are due.

Keep an Eye on Usage Trends

Your product’s usage data shouldn’t be ignored. If customers are consistently going over their contracted limits, it’s time to step in, before renewal negotiations start. You could use this as a negotiation tactic during the renewal. 

Here’s the play:

1. Spot overuse early.
2. Raise the issue proactively. Not as a “gotcha” but as an opportunity to adjust their plan before it becomes a problem.
3. Use it as leverage. More usage means they’re getting value, which strengthens your hand when it’s time to renew.

This isn’t about squeezing customers. It’s about being prepared, helpful, and ready when renewal talks start.

Be Smart About Discounts and Free Licenses

Discounts feel like a quick win, but they can destroy your NDR if you’re not careful.

Sometimes it’s smarter to give away free licenses for a fixed term than to offer long-term price cuts. This keeps your full-price baseline intact while still adding customer value.

Think of free licenses like a well-timed trial extension. They create goodwill without putting you on a never-ending discount treadmill.

Lock in a Strong Renewals Process

Renewals don’t fall apart overnight, they unravel slowly, often because of hidden risks teams miss until it’s too late. Maybe a key stakeholder left months ago, or a decision-maker’s priorities changed without anyone noticing. By the time renewal talks start, the deal’s already in trouble.

This is where a structured renewals process becomes your safety net. You need to know:

• Who’s still involved? Have there been leadership or role changes you missed?
• Where are the gaps? Are all decision-makers on board, or is someone slowing things down?

Plan2Renew helps teams track these critical details throughout the customer lifecycle, long before renewals hit the calendar. It keeps everyone on the same page by identifying risks like missing stakeholders or unclear account ownership. If something changes internally at the customer’s company, you’ll know, and be ready.

By pairing Plan2Renew with OrgChartPlus, teams can visually map out key decision-makers and stay ahead of role changes or organizational shifts. You’ll never be left hoping the right people are still in place to sign off. No surprises, no missed renewals.

Make NDR Everyone’s Business

If your team isn’t measured on NDR, it’s just a number on a spreadsheet. Make it part of their targets.

Track NDR in Salesforce, set realistic goals (accounting for natural churn), and reward the teams driving expansions and renewals. People perform better when they’re tied to results that matter, and NDR is the one metric that keeps revenue steady and growing.

Improving NDR isn’t about flashy tactics or complicated models. It’s about getting the basics right, early upsells, smart renewals, and keeping customers happy without eroding margins. 

What’s your team doing to lock in growth this year?

Can Non-Subscription Companies Use NDR Principles?

Absolutely. While NDR is easiest to calculate in subscription businesses, the principles behind it work for any company, even those selling services or physical products.

The math might be trickier, but the idea is the same: retain existing customers and increase how much they spend over time.

Think about how B2C companies do this:

• New product launches? Email.
• Flash sales? Email.
• You browsed something for two seconds? Email.

They’re working to drive repeat purchases from people who already trust them, making every interaction an opportunity to boost revenue.

For non-subscription companies, this means:

• Staying top of mind through consistent, value-driven communication.
• Predicting repeat purchases based on past buying behavior.
• Actively chasing repeat business, not just waiting for customers to return on their own.

You might not be able to track NDR as a simple number, but you can still apply its core principle: grow revenue through the customers you already have.

Summary

Use NDR as a blueprint for growth. By retaining more revenue from your existing customers and driving expansions, you create sustainable growth without constantly chasing new business.

Here’s the playbook:

• Spot opportunities early: Know what your customers need before they realize it.
• Monitor usage trends: Stay ahead of overages to strengthen renewal conversations.
• Be strategic with offers: Use short-term free licenses instead of long-term discounts.
• Lock in a strong renewals process: Stay on top of role changes and shifting decision-makers.
• Make NDR everyone’s responsibility: Measure it, track it, and reward teams driving growth.

Even if you’re not a subscription business, the principles of NDR still apply. Keep your brand top of mind, chase repeat business, and maximize value from the customers you already have.

Think about your current NDR strategy.

Are you tracking NDR or leaving revenue on the table? 

Tools like Plan2Prosper and Plan2Renew help you stay ahead by turning insights into action, before renewal deadlines hit.

Let us show you how we can help, and start your free trial today!