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Dollar-based net expansion rate (DBNER) is a measure of how much revenue you earned from existing customers due to add-ons, upselling, and cross-selling.
Companies use different methods of calculating net expansion, but the basic idea is to compare the revenue from customers within a cohort during a previous base period or at a previous point to the revenue from remaining customers today. New and churned customers are excluded, so you’re only looking at members of the cohort who remained customers the entire time.
DBNER can help you understand how sticky your product is and how much growth opportunity there is within your existing customer base.
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