Expansion, Downsell, Renewal Deals

[OlenaBondar]

Hi! I am unsure of the best way to manage different deal types. I am considering maintaining a single Sales Pipeline and introducing naming conventions to filter and report on deals, e.g., "Expansion/New Business/Downsell/Renewal - Company XYZ - $50,000." Could someone clarify these scenarios, please?

Scenario 1 (Dowsell): Customer A's New Business Deal was Closed Won on November 1, 2023, at $10K ACV. On April 20, 2024, Customer A decides to downgrade the contract, and the new contract value is $6K ACV. How should I manage deal creation/update? How do I ensure the $4K in lost revenue is reflected in forecasting? Do I need to prorate or use discounts for this? Do I need to update the 'New Business' deal?

Scenario 2 (Renewal + Expansion): Customer B's New Business Deal was Closed Won on November 1, 2022, at $10K ACV. On November 1, 2023, Customer B renews the contract and expands services, and the new contract value is $16K ACV. On April 20, 2024, Customer B requests another upgrade, and the new contract value increases to $21K ACV. How should I manage deal creation/update? How do I ensure the $6K + $5K added revenue is reflected in forecasting? 

Thanks for your help!

[Swevive]

@Olena This is a simple use case and I still haven't found a good way to do this on Hubspot. I posted a similar question here -> https://community.hubspot.com/t5/128172-RevOps-Discussions/Recurring-Revenue-Deals-Upgrades-Downgrad...

[EmmaAtKiwi · Accepted solution]

Hi @OlenaBondar! You could update the standard "Deal Type" property to specify if the deal is a renewal, upsell, etc.

Navigate to Settings > Properties > Deal Properties > type "deal type" in the search bar > hover over Deal Type and click "edit." Here you can add/remove whatever options make sense for your business. Pro Tip - make Deal Type required when creating a new deal.

[OlenaBondar]

Thanks for replying to me, @EmmaAtKiwi! Didn't realize I could edit this standard property!

I am still confused about how to properly record these deals to reflect ARR and MRR changes. Do you have any comments on the scenarios I provided?


 

[PamCotton]

Hey @OlenaBondar, thank you for posting in our Community!

Managing different deal types like Expansion, Downsell, Renewal, and New Business in a single sales pipeline can be done effectively with the right approach.

I want to invite our top experts to this conversation, @james-portant, @Lucila-Andimol any recommendations for @OlenaBondar matter?

Thank you,

Pam