SECTIONSUsing the Subscription Bookings Summary
The Summary page displays a general view of the status of your Subscription Bookings, your subscription pipeline status, renewal rate or churn rate, and the impact of these metrics on your business.
This page enables you to:
- View the recurring revenue amount of the open renewals you have in the near future.
- View the renewal rate for your contracts and the impact on your recurring revenue.
- [Optional] You can configure this dashboard to display the churn rate using the Subscription Bookings configuration page.
The data displayed is derived from the Billing Contracts dataset. For details on this dataset, see "Datasets" in Using Financial Analytics Dashboards.
Summary KPIs
The following key performance indicators (KPIs) are used in the Subscription Bookings dashboard. All KPIs are based upon your recurring revenue and use the Contract Line Item (CLI) as primary data source. All these metrics are filtered to exclude replaced and superseded contracts.
| KPI | Description |
|---|---|
| Open Renewals |
The recurring revenue amount for expiring contracts that don't have an associated renewal opportunity. This KPI is calculated by adding up the value of contracts that have their end date within the selected or the next two quarters and don't have any renewals associated. The value of these contracts is derived from the Contract Line Item object. Contracts that have the status "Superseded" assigned do not count towards this metric. |
| Closed Renewals |
The recurring revenue amount for expiring contracts that have an associated renewal opportunity. This KPI is calculated by adding up the value of contracts that have their end date within the selected or the next two quarters and also have a renewal associated. The value of these contracts is derived from the Contract Line Item object. |
| Contract Churn |
The number of customer contracts that have withdrawn their subscription. This KPI is calculated by counting the number of non-superseded contracts that have their end date within the previous quarter to the one selected. Contracts that have a related next opportunity do not count toward this metric. |
| Net New Recurring Revenue (MRR or ARR) |
The amount of recurring revenue gained from new contracts this quarter. This KPI is calculated by adding up the recurring revenue value for net new contracts that start during the selected quarter. |
| Net New Accounts |
The number of net new customer accounts, calculated by counting the number of accounts that have their first contract start date during the selected quarter. |
| Recurring Revenue Last Year (MRR or ARR) | The recurring revenue at the close of the previous December to the selected year. This figure represents the state of the revenue pipeline at the end of the year. |
| Recurring Revenue Over Time (MRR or ARR) |
The accumulated recurring revenue, calculated by adding the values of the active contracts. This value is derived from the Contract Line Item object. Contracts that have the status "Superseded" assigned do not count towards this metric. |
| CLI Recurring Revenue (MRR or ARR) | The recurring revenue value as calculated by the contract value in the Contract Line Item object. |
| YTD Renewal Rate |
The year to date (YTD) rate of renewal for your subscription bookings. This KPI is calculated using the following formula: 1 - abs(Recurring Revenue Churn YTD / Sum of renewable Contract Line Item Recurring Revenue YTD) |
| [Optional] Churn Rate |
The churn rate for your subscription bookings. This KPI is calculated using the following formula: abs(Recurring Revenue Churn / Sum of renewable Contract Line Item Recurring Revenue). |
| Average Customer Lifespan |
This is an intermediate calculation used by some KPIs. The average customer lifespan is calculated using the following formula: 1 / Churn Rate |
| Customer Lifetime Value (CLV) | The CLV is calculated multiplying the average subscriptions revenue per customer by the average customer lifespan. |
| Customer Acquisition Cost (CAC) | The CAC is calculated dividing the total expenses required to acquire the customers by the customers associated with these expenses. |
| CLV/CAC Ratio | The CLV/CAC ratio compares the value of an average customer over their lifetime with the cost of acquiring it. |
Using the KPI Gauges
These gauges enable you to have a general, up-to-date vision of your Subscription Bookings performance. The Net New Recurring Revenue and the Open Renewals KPIs display the sum of recurring revenue value regardless of the count of individual contracts. For example, the recurring revenue value in the pipeline is the same if you have a contract for 50K USD, or five contracts with the value of 10K USD each.
Some of these gauges also have a specific details page linked to them. The details page provides you with a breakdown analysis of the data related to the KPI. To access the details page for a metric click View Details in the corresponding KPI gauge.
|
Gauge |
Description |
|---|---|
| Net New |
Displays the amount of recurring revenue in the pipeline that belongs to net new contracts signed during the selected quarter. You can also use this gauge to measure and compare the percentage net new contracts gained over the preceding quarters. |
| Open Renewals |
Displays the amount of recurring revenue in the pipeline that belongs to open renewal contracts. You can also use this gauge to measure and compare the percentage of open versus closed renewals. For more information on the details page for this KPI, see Open Renewals Details. |
| Net New Accounts | Displays the number of net new customers gained during the selected quarter. This KPI doesn't display the sum of recurring revenue value, but rather the number of new customers regardless of their impact on revenue. You can also use this gauge to measure your effectiveness in attracting new customers. |
| Contract Churn |
Displays the number of contracts lost and withdrawn from your subscription pipeline over the last quarter relative to your date selection. You can also use this gauge to measure and compare how the churn rate has varied in the preceding quarters. For more information on the details page for this KPI, see Contract Churn Details. |
Using the Recurring Revenue Chart
This chart displays the trend of your cumulative recurring revenue over time. Each datapoint represents the amount of recurring revenue at the end of each month. The chart displays the trend for the selected year and its previous year for a comparison of the business performance. You can use the Analytics Studio options to set notifications for a particular threshold. For more details on setting notifications in a Subscription Bookings chart, see Setting Notifications.
Using the Renewal Rate Chart
Depending on your configuration options for the Subscription Bookings dashboards, this chart can display either the renewal rate or the churn rate for your business. By default, this chart displays the renewal rate.
This chart displays the YTD renewal rate or churn rate trend for your Subscription Bookings. Each datapoint represents the percentage of successful renewals or subscription cancellations at the end of each month. The chart displays the trend for the selected year and its previous year for a comparison of the business performance. You can use the Analytics Studio options to set notifications for a particular threshold. For more details on setting notifications in a Subscription Bookings chart, see Setting Notifications.
Using the CLV/CAC/Ratio Chart
This chart displays the data for the customer lifetime value (CLV), the customer acquisition costs (CAC), and the value versus cost ratio. You can configure the settings used by these calculations in the dashboard configuration page. For more information, see Selecting the Subscription Revenue for the Customer Lifetime Value Chart and Selecting the Expenses for the Customer Acquisition Costs Chart.