Calculate GRR and NRR?

To calculate Gross Revenue Rate (GRR) and Net Revenue Rate (NRR), you will need the following information:

1. Gross Revenue (GR): Total revenue generated from sales or services before any deductions or expenses.
2. Net Revenue (NR): Total revenue generated from sales or services after deducting any discounts, returns, or allowances.

The formulas to calculate GRR and NRR are as follows:

GRR = (GR / Total Bookings) * 100
NRR = (NR / Total Bookings) * 100

For example, if a company has a Gross Revenue of $1,000,000 and a Net Revenue of $800,000, and the Total Bookings are 10,000, the calculations would be as follows:

GRR = ($1,000,000 / 10,000) * 100 = 10%
NRR = ($800,000 / 10,000) * 100 = 8%

Therefore, the GRR is 10% and the NRR is 8%.

GRR (Gross Reinstatement Rate)

GRR = (Number of Reinstatements / Number of Cancellations) - 100%

NRR (Net Reinstatement Rate)

NRR = ((Number of Reinstatements - Number of New Sales) / Number of Cancellations) - 100%

Example:

If a company has:

- 200 cancellations in a given period
- 50 reinstatements
- 10 new sales

Calculations:

- GRR = (50 / 200) - 100% = 25%
- NRR = ((50 - 10) / 200) - 100% = 20%

Interpretation:

- GRR of 25% indicates that for every 4 cancellations, 1 customer returns to the company.
- NRR of 20% shows that the company had a net gain of 20% of its cancelled customers (by subtracting new sales from reinstatements).

Additional Notes:

- Reinstatements are typically measured over a specific period, such as a month, quarter, or year.
- New sales are only considered in the NRR calculation if they occur during the same period as the reinstatements and cancellations.
- A high GRR and NRR are desirable as they indicate a loyal customer base and effective reinstatement efforts.