Recurring Revenue Churn & Additions by Month
What is the Recurring Revenue Churn & Additions by Month Report and How is it Used?
The Recurring Revenue Churn & Additions by Month report shows you the clients you’ve lost and new clients in a specific month. It indicated how many clients and how much recurring revenue you’ve lost or gained and what part of your total client base this represents. We then compare the churned and added client(s) to your whole recurring revenue client base to determine the % this represents.
Churn is calculated by comparing the recurring revenue of your clients month over month. If a recurring revenue client stops appearing one month it is considered a churned client. If a client is new, their will be no recurring revenu in prior months.
(Note: If a client's recurring revenue stops and then starts up again in a subsequent month, the client is considered 'new' for recurring revenue. This will not effect the previous churn month.)
The report is used to track how well you’re doing in terms of customer retention and detect potential churn trends over time for cancelled client. For added clients, the report measures net new customer trends.
We define Recurring revenue as revenue coming from FFA Labor, Product Subscriptions or Product FFA Additions.
The report can be accessed under the Revenue tab on the sidebar menu.
Filters
- Date Range: Select a date range. Because this is a monthly report you can only select full months. Each month in the range will be represented by a column in the report
- Quick Select: The quick select dropdown allows you to instantly pick a predefined set of months.
- Client Types: Select all client types, multiple client types, or one client time. The default is All Items are included.
- Locations: Use if you want to only show clients from specific locations. The default is All Items are included.
- Account Managers: Use to select clients from one or more account managers. The default is All Items are included.
- Service Leads: Use to select client from one or more service leads. The default is All Items are included.
- Agreement Types: Select clients that use one or more agreement types. The default is All Items are Included.
- Product & Labor: You can filter by labor, product, or both9. Minimum revenue allows you to filter out clients who have a MRR under the value that you’ve selected.
- Minimum Revenue: Limit the report to show only larger revenue clients. The report will show all clients with a minimum monthly revenue set in this filter.
For the filters 3 - 7, if nothing is selected, ALL is assumed.
Once you change the selection, don't forget to apply the changes by clicking on the Filter box. If you want to Reset all of the filters to the default setting, click on the Reset.
Report
In the graph below we are showing the report with the default filters : trailing 12 months, $1 Minimum Revenue, both labor and product.
The graph shows you at a glance how many clients & revenue you lost over the selected time period in the blue and pink bars and how many new clients & revenue you gained over the selected time period in the dark and lighter green bars. If the blue bar is higher than the pink bar for a given month, it means that you mainly lost smaller clients, and if the pink bar is higher that you lost larger parts of your recurring revenue. The same is true for the dark green and light green bars, but in reverse.
For example in the chart below, for July, two clients were lost with combined revenue of $8,625 This constituted 1% or lost clients and 1% or lost revenue. There were two new client with added revenue of $36,860. This constituted 1% of clients, but 4% of gained revenue. Hover over the bars to get the detailed information on client names and revenue.
The table below the chart gives you the detailed information for the entire date range. It shows you the detail for each month, as well as the averages and totals for the whole period.
- Lost Logo is the number of lost MRR clients during this month.
- Lost Logo % is this number compared to the total number of MRR clients.
- Lost Revenue is the MRR represented by the clients you lost this month.
- Lost Revenue % is this number compared to your total MRR Revenue.
- Added Logo is the number of new MRR clients during the month.
- Added Logo % is the number compared to the total number of MRR clients.
- Added Revenue is the MRR represented by the new client for the month.
- 8Added Revenue % is the number compared to your total MRR.
The final two columns show Totals and Averages for all of the month in the date range
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