Harries: Sub-100% user retention in prosumer AI is acceptable if viral expansion keeps NRR over 100%
Luke Harries · 20VC: ElevenLabs Head of Growth on Why You Do Not Need PMs | The 7-Part Launch Playbook That Gets 700K+ Views Per Product | The Truth About CAC, Payback & Performance Marketing in AI with Luke Harries · May 23, 2025 · at 57:15
Luke Harries, Head of Growth at ElevenLabs, explains why standard enterprise SaaS retention metrics do not directly apply to consumer/prosumer viral AI software.
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“And I think when you look at consumer and prosumer, yes, for that individual user, you may only be on 87% revenue retention, but what then happens is you build a product on Lovable, you then share it with a bunch of your friends, a handful more people sign up to Lovable, And so when you take into account the natural virality rates, I think your overall NRR of that one account you've grown may actually be a lot higher. You should still look at the individual, like, seat retention, but I think it's fine to have it below the hundred percent on the individual level, and then when you zoom out and taking into account the organic growth, which comes because of it, that you do want to be over a hundred percent.”
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