Recurring Revenue in Sales Funnel – added MRR & Long Term Value
SmartFunnel® has some new features for businesses with Recurring Revenue, with new data fields added to the Sales Funnel revenue estimates. As many companies are selling monthly recurring revenue (MRR) and/or capital purchases we how have fields to capture your estimates of those revenues, and help with funnel planning and revenue forecasting, both for capital (Capex) and operating (Opex) revenues.
Recurring Revenue: Subscriptions or Services
Monthly Recurring Revenues could be for Subscriptions or Services, depending on your business and offerings. The new data fields are in your Opportunity List “Deals Open”:
1. CAP$ -The original SmartFunnel Deal size “Amt$” is now renamed “CAP$” to reflect capital value of Transaction-based deals, or capital components of Deals.
2. MRR and Term – The monthly recurring revenue (MRR) you estimate for an opportunity, and the time in Months that you use for estimating the duration of revenues at that level. Term is often 24 months or 36 months, depending on your customer agreements and planning horizons.
3. LTV$ (Subscriptions) – Long Term Value (LTV$) is the simple multiplication of MRR x Term.
4. TOT$ – Computed by SmartFunnel, a new field “TOT$” which is a total of CAP$ + LTV$ = TOT$, for use in dashboard progress charts.
We welcome any questions about usage of these new functions – just drop a note to support@SmartFunnel.com.