How to report deals with expiring recuring products

flattermann
flattermann Member Posts: 2 NEW MEMBER
Third Anniversary
in Sales CRM #1

Hello everybody,

we are selling software licenses on a yearly basis. They do not renew automatically. Our sales-team has to trigger the process to get an order for extension.

In the past we had a Deal for every order and extension. After a Deal was marked as won, the deal was duplicated, with expected date today+one Year and put into a seperate Pipeline.

This got very confusing from time to time, as we had to look into different deals to get the current amount of licenses due to interim reorders.

We now include everything in one deal. This increases clarity, but we are struggeling to find a report for "revenue at risk" as we cannot report the deals with expiring products.

In the past we just reported the "revenue at risk pipeline" and everything was clear.

The easiest part would be to create a "revenue at risk" type of product to use for reporting, but this could not be excluded in the Deal forecast view. If we could filter here for product name, then we would have it.

How do you handle clients with expiring recuring products?

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Answers

  • Reeve Lui
    Reeve Lui Member Posts: 59 VERIFIED MEMBER
    10 Comments First Anniversary First Answer 5 Likes
    #2

    @flattermann Hey there, I have many customers having this similar issue too.Based on your situation, I have some suggestions:

    Add a new stage in your pipeline:

    • Renewal Due Soon
      • This is to flag deals nearing their license expiration, for e.g within 60 days of expiration

    Add custom fields:

    • Expiration Date:
      • Store the license expiration date. This is crucial for accurate reporting and tracking.
    • Renewal Status:
      • Track the renewal status (e.g., "Active," "Expired," "Renewal Pending," "Renewed").
    • Renewal Amount:
      • Get the renewal amount, this can be identical to the Deal value.

    Now, with those above implemented, you can create a report filtered by the "Expiration Date" field to identify deals within a specific timeframe (e.g., next 30, 60, or 90 days).

    Then for "Revenue at Risk", you can check by filtering:

    • Deals by the stage "Renewal Due Soon"
    • Deals by the custom field "Expiration Date"

    In addition, you can also include a component that sums the "Renewal Amount" field for deals in the "Renewal Due Soon" stage.

    Similarly, you can track "Renewal Success Rate" by the percentage of deals successfully from the "Renewal Status"

    Hope this helps, if you like a quick chat, feel free to reach out to me at reeve@astersense.com

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