One of the key things customer success leadership is tasked with in SaaS businesses is a renewal forecast.
Much like a sales forecast, its goal is to help the organization by projecting likely growth and churn rate and comparing those to past or industry benchmarks.
“Out of all customers set to renew how many will renew, upgrade or cancel “
In businesses with diverse price points and customer sizes, another dimension is often required:
“Out of all revenue set to renew, how much will actually renew”?
Typically organizations will look at this report for the upcoming- and next- quarter. (though some businesses may prefer to use a monthly cadence).
Current quarter forecast
Helps get a “honest view” on the likely churn rate for the upcoming quarter. Typically, customers with poor health this close to an annual renewal are at high risk of churn and should be considered “in the war room”.
Because often it is too-late (and always too expensive) for the customer-success team to intervene and “save” the client, a good forecast should always look ahead for the next in line period as well.
The Totango Health Console can be customized to provide an online dashboard on customer and revenue risks in the current quarter. We recommend setting this up at the beginning of the quarter and visiting weekly, to keep an eye on current status.
Configure a Segment to capture all renewals within the current quarter. The Dashboard will show you a breakdown of their health profile, along with the revenue at risk for these customers. You can also review their health trend to see if these same accounts were doing better earlier in the year.
Add a Segment at the start of the quarter:
Define segment based on renewal date
Review results every week
You can also create a List in Totango filtered to accounts set to renew during the quarter. The list should return the account’s health, contract value and renewal date and export into Excel for further analysis.