Set renewal and expansion targets

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that want predictable renewals and steady net growth.

The quick answer

Start with the last four quarters by segment. Set targets for gross dollar retention and net revenue retention that fit your model and history. Build bottom up goals by account with owners and dates. Align sales and success on who owns renewal and who owns expansion. Review progress every month.

The method in eight steps

Calculate the baseline
For each segment and plan compute gross dollar retention and net revenue retention across the last four quarters. Note the spread, not only the averages.
Choose practical targets
Set targets that stretch but match your model. For example a recurring services firm may target ninety two to ninety six gross and one hundred to one hundred and five net. A durable subscription with strong expansion potential may target higher.
Assign ownership by lane
Write who owns renewal and who owns expansion for each segment. If account managers own both, confirm how they partner with success on adoption and with product on roadmap.
Plan account by account
Create a renewal and expansion view that lists term date, health, risk, and next step. For each account write a target and name the owner and the date of the next call.
Design expansion offers
Tie expansions to clear outcomes such as more sites, more users, a higher service level, or a bundle that reduces total cost. Price the step and write a short script.
Add a save motion
Use your health score to flag reds. Attach a save plan template so owners can move fast.
Run a monthly revenue meeting
Review renewal risk by segment, expansion pipeline, and progress against targets. Shift help to the segments that lag.
Close the loop
After each quarter update proof points and scripts based on what landed and what stalled.

Example

A company at twenty million created account plans for the next two quarters of renewals. With clear owners and offers they raised net revenue retention by seven points within six months.

Pitfalls and fixes

Targets with no account plan. Plan by account with owners and dates.
Confusion on who owns expansion. Write the lanes and stick to them.
Weak offers. Tie expansions to one outcome and one price step.

Checklist

Baseline GDR and NRR by segment
Targets set by segment
Ownership by lane written
Account plans with next steps
Monthly review on the calendar