Companies working with subscriptions often measure their revenue by Annual (ARR) or Monthly (MRR). With this sales model activated it's a whole lot easier to see the revenue value of opportunities, orders, and your customers. You can also set sales targets for both subscriptions and one-off products with this model.
This article covers:
- Whether to choose ARR or MRR
- How to include/exclude churn and contractions when calculating ARR/MRR
- How to choose targets for subscriptions & one-off products
- How to view a company's ARR & cashflow
- How to switch between viewing ARR or one-off values in the sales board
Whether to choose ARR or MRR
Your chosen option calculates the subscription value, by year or by month. It then displays that value inside opportunities, orders, companies, and contacts.
How to include/exclude churn & contractions when calculating ARR/MRR
You can select whether to include the value of lost customers (churn) and decreases (contractions) in ARR/MRR in the calculation:
What is churn?A sales definition of lost customers. |
What are contractions?Contractions are decreases in value for subscriptions. If a customer used to buy for $100 yearly and then downgrades to only pay $80 a year, this is a $20 contraction. |
How to choose targets for subscriptions & one-off products
The main metric that most subscription-based companies use is either ARR or MRR. A value that comes from subscriptions. If you want your sales teams to focus on selling subscriptions, set this target.
Subscription and one-off targets only appear after you've chosen a recurring revenue model.
The contribution margin sales model will instead show you 'Contribution target' as an option.
You'll need to be an Administrator to view these menu options
- CRM → Targets → Subscription targets
- CRM → Targets → One-off targets
Subscription productsSubscription products are billed at a recurring interval and use the Subscription feature in Upsales. This means you can automate your revenue stream. |
One-off productsProducts that have a one-time cost for your customers and are not billed recurringly. |
How to view a company's ARR & cashflow
Enter a company page in Upsales and click the Sales tab (only visible if there are any historical sales):
You can now view and filter sales-related data for revenue, growth, and cash flow:
How to switch between viewing ARR or one-off values in the sales board
With the Recurring Revenue sales model you are now able to switch between showing subscription values or one-off values on the sales board.
- Click Sales & CRM → Sales board:
- Click the dropdown next to Sales model to switch between ARR (or MRR depending on your choice in Step 1), one-off, and total order value:
Sales forecast
You can also view projections by clicking the forecast:
You can view and edit the forecast by users, opportunity stages, and periods: