This feature is expected to launch publicly Q1 2021. We are currently looking for pre-release testers, Please contact email@example.com if you would like to try this feature out before release.
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 goals for both subscriptions and one-off products with this model.
ARR or MRR?
If your company measures revenue from subscriptions you probably know if it's Monthly or Annual revenue you want showing inside Upsales. What this option does is basically calculate the subscription value either by year or by month and then display that value inside opportunities, orders, companies, and contacts. So instead of just the one-time order value being display, you can also see the MRR/ARR value of for example an opportunity.
Use churn and contractions when calculating ARR/MRR?
When viewing a company or a report of, for example, user sales goal, would you like the value of lost customers and decreases in ARR/MRR to be included in the calculation?
What is churn?
A sales definition of lost customers.
What are contractions?
Contractions are a decrease in value for subscriptions in Upsales. If a customer used to buy for $100 yearly and then downgrades to only pay $80 a year, this is a $20 contraction.
Settings sales goals for subscriptions & one-off products
The main metric that most subscription-based companies use is either ARR or MRR, and that value comes from subscriptions. If you want your sales teams to focus on selling subscriptions, set this goals.
Basically, products that have a one-time cost for your customers and are not billed on multiple occasions. Setting a one-off goal is done in the same place other sales goal are set, in Upsales CRM settings. This goal can of course be combined with the subscription goal.