Jul 8, 2021 2:37 AM - edited Jul 8, 2021 8:16 AM
In our company we do alot om M&As. Here the strategy is to move customers from their legacy system, that we've aquired through the M&A, to our system. We move customers from on prem to the cloud.
Let's do an example:
The amount on the Deal in Hubspot (the MRR) says $ 1 500, but that doesn't mean that we as a company has secured $ 1 500 in new revenue. Instead we've secured $ 500 in new revenue and it's only the $ 500 that is relevant. So how do we measure this?
How do we do it today?
On the Company and Deal object we've created fields for Current MRR (text field). This means that when we close a Deal we insert the customers current MRR on that Deal, so that we can do a report in excel an manually calculate the AMRR by subtracting the current MRR with the amount (MRR) on the won Deal in Hubspot.
What challenges does this give us?
First, you are not able to see the added revenue sold in Hubspot. When looking at all closed Deals for a month it could be $20 000, but this says nothing about AMRR. With won Deals we are, as explained above, able to do this manually, but it is not only with won Deals that we wish to look at AMRR, we also want to only forecast AMRR. So how do we do that?
The goals inserted into Hubspot are also AMRR. Therefore, we are not able to see if we are on or off target, due to the fact that the goal is AMRR and won Deals are shown as regular MRR.
How I think (hope) we can solve it
My assumption is that it should be possible to set up Hubspot to automatically subtract the amount inserted into the Current MRR field on the Deal with the amount (MRR) on the Deal and then setup all reports (won Deals, A vs B, Forecast, lost Deals, etc.) to use that number instead.
Hope that anyone has an easy-to-implement-solution to this.
If you need to me to elaborate further don't hesitate to ask.
Thanks in advance!
Solved! Go to Solution.
Sep 3, 2021 5:15 PM
Jul 12, 2021 6:34 AM
Thank you for reaching out and for the detailed use case!
Sep 1, 2021 12:35 PM
Thanks for your answer.
Not sure why I didn't notice your answer sooner. Anyway, would love if any of the experts have any suggestions? This should be a fun one to crack I would imagine 😀
Sep 2, 2021 3:31 AM
Sep 2, 2021 3:14 PM
What if you add a couple of Custom Properties to your Deal, specifically:
- Legacy Revenue (e.g. $1,000 using your example)
- Revenue Increase (e.g. $500 using your example)
Then you could keep the Deal Amount for the the Total Sales (so you can take advantage of all the default reporting) and you can then create a new Custom Report to pull out the revenue increase.
Also, if you can, I'd look at using Products and Line Items to improve your reporting.
Happy to discuss – send me a message.
Sep 3, 2021 4:37 AM - edited Sep 3, 2021 11:01 AM
Thanks for replaying.
A good suggestion! A few comments though:
As an solution for Closed Won Deals (maybe also Closed Lost Deals) this is definately something that could work - didn't think about that, but I don't see it as a great solution for Forecasting due to many manual calculations during the lifespan of the Deal.
Sep 3, 2021 5:15 PM
Sep 9, 2021 8:29 AM
This is exactly what I hoped existed. I'll look into this. From the looks of it, this solves our problem. Thank you very much. I'll update you on the outcome after our BI team get a chance to look more into this.