We are a recurring revenue business, where we provide dedicated staffing for our clients from overseas ( for sake of simplicity you may think of us as a month to month Spotify, or SaaS product).
On our Sales Pipeline, we put ARR (annual recurring revenue) as a metric, even if the contract is a month-to-month one - to keep the metric consistent. ( as opposed to some MRR, some ARR) In most cases our clients renew their services even after the initial year, think of Spotify or Netflix, people don't cancel their subsciptions after Y1.
My question is two fold.
1) If a client churns, what do you do - so that your metrics are not skewed? We do not want to go back to the "deal" and adjust the ARR from say $20K to $10K if client churns after 6 months)
When we look at Sales --> Forecast or any other reports I want to be able to see what "was closed" in a given month, but also want to be able to see "what is left" after churn.
2) Is there a quick way to keep track of churn rate, Net Revenue Retention ( NRR) etc via Hubspot, or should we stick to Netsuite and financial analysis tools for that?
Have you tried HubSpot's MRR Report? It's reasonable new (still in beta) and not everyone's see it yet... oh, and it's only available in Enterprise.
I like the way you can make changes to show MRR Lost and MRR Upgrades. There are separate calculated fields that you could use to work out churn.
From experience we've had difficulty reporting on ARR for a specific year (assuming a contract starts at various times during the year, not aligning to the start of a year - calendar year nor financial year). We did work out a solution but it require processing the data outside of HubSpot.
Have you tried HubSpot's MRR Report? It's reasonable new (still in beta) and not everyone's see it yet... oh, and it's only available in Enterprise.
I like the way you can make changes to show MRR Lost and MRR Upgrades. There are separate calculated fields that you could use to work out churn.
From experience we've had difficulty reporting on ARR for a specific year (assuming a contract starts at various times during the year, not aligning to the start of a year - calendar year nor financial year). We did work out a solution but it require processing the data outside of HubSpot.
