Forecast and analyze account revenue

Who can use this feature?

  • All users with access to Executive Console can use Revenue Center; all team members can update account forecasts
  • Configuring settings, overriding values, defining goals, and setting forecasts for all accounts requires global admin or advanced permissions
  • Available on Enterprise plans

For each account, you can set a forecast state, forecast contract value, and forecast period. Within Revenue Center, you can view forecasts, track actual results, and analyze revenue trends for all accounts in your team. 

Global admins and users with advanced permissions can configure Revenue Center settings, including the time period value, contract value, churn calculation, notifications, and options for setting forecast for hierarchies. 

Revenue Center data is updated on a daily basis (e.g., contract renewal dates). Forecasted data updates immediately.

Set or update a forecast

You can update forecast values on the account profile (individually), from a segment, or from the forecast overview.

A forecast represents one of the following states:

  • mceclip9.png Upsell: Increase to contract value
  • mceclip10.png Renewal: Extends contract date (no change to contract value)
  • mceclip11.png Downgrade: Decrease to contract value
  • mceclip12.png Churn: Does not extend contract date (no change in contract value)

Update forecast from the account profile

Updating forecast attributes in bulk from a segment may conflict with updates to forecast attributes on an individual account profile.

  1. Open an account profile.
  2. Click Update Forecast or Forecast Needed (telescope icon).
    mceclip0.png
  3. For the selected account, choose the forecast state and forecast period. If the forecast state was an upgrade or downgrade, enter the new expected contract value.
  4. Click Save.
    mceclip1.png

Update forecasts from the forecast overview

There is no ability to set a forecast when there are no renewable accounts for the selected period. You cannot update forecasts for time periods in the past.

  1. From the left nav, click Revenue Center (under Executive Console).
  2. From the timeline, choose the current or future time period.
  3. From the team view, filter by My Accounts.
  4. Click the Update Forecast (current) or Set Forecast (future) from the telescope icon in the upper right corner or in the table.

    The list of accounts that have a contract renewal date in the selected time period appear (e.g., renewable accounts). By default, only accounts that need a forecast are displayed.

  5. Use the filters to find the accounts you want to update.
  6. For each account, choose the forecast state and forecast period. If the forecast state was an upgrade or downgrade, enter the new expected contract value.
    mceclip2.png

    To update contract renewal date, right-click on an account name and open in a new tab.

  7. Continue updating forecasts for other accounts as needed.
  8. Click Done Forecasting.

View and update overdue renewal accounts

  1. From the left nav, click Revenue Center (under Executive Console).
  2. From the team view, filter by All Accounts or My Accounts.
  3. Click the Overdue renewal from the clock icon in the upper right corner.

    The list of accounts that have a contract renewal date more than 7 days past due. 

  4. For each account you want to modify, click the calendar icon to set a new renewal date.
    mceclip3.png 
    • To update renewal status, right-click on an account and open in a new tab.
    • To create a SuccessPlay for the selected accounts, click Create SuccessPlay.
  5. Click Save.

Contract renewal dates will be updated the next business day. 

View and analyze forecasts by time period

  1. From the left nav, click Revenue Center (under Executive Console).
  2. From the timeline, choose the forecast period you want to view.

    The following time periods are available:

    • Past (4 time periods: Actual Net Retention Rate and Ending ARR
    • Current: Forecasted Net Retention Rate and Forecasted Ending ARR
    • Future (4 time periods): Forecasted Net Retention Rate

    Timeline_Revenue_Center_gif_Totango.gif

    Forecast period is defined by global admins or users with advanced permissions.

  3. Use the team view, breakdowns and trends views to analyze data for accounts with renewal dates in the selected period. See below.
  4. Apply additional filters to the views as needed:

Team view

The team view includes the following areas:

  1. Renewable: Number and contract value for the accounts that have a contract renewal date in the selected time period. (Monthly subscription accounts that do not have a renewal date are also included.)
    mceclip4.png

    Click on number or contract value to view more details (account name, contract value, renewal date, renewal state, new contract value, success manager). Accounts with a telescope icon indicate that a forecast is set for that account. mceclip5.png

    The option to download is available to global admins or users with advanced permissions. Renewal state (actual) vs. forecasted renewal state  is included in the download data

  2. Opportunities and At Risk: Evaluate opportunities and risk.
    • Opportunities: Number and contract value forecasted to upsell but haven't won yet
    • At Risk: Number and contract value forecasted to churn or downgrade but haven't lost yet
    • Growth: View your actual, forecasted, and goal growth. Growth is calculated using Upsell ARR - Lost ARR.  
      mceclip7.png

      Click on number or contract value to view more details (account name, contract value, renewal state, new contract value, success manager). Click Create SuccessPlay to run workflows to save these accounts or push the upsell.

  3. Tabular view: Represents three perspectives.
    • Actual (quarter to date): Click to view/update details for actual financial data up to date. Actual information is updated whenever new information is sent to Totango.
    • Forecast: Click to view/update details for how the current period will end. The forecast is calculated by aggregating the actual data with the forecast you manually set. Whenever you get new information, you should update the forecast.
    • Goal: Represents the commitment to the company (configurable only with permissions).

      For each perspective, you can find a dollar value, the number of accounts, and performance analysis. The explanation for each formula can be found by hovering near the formula name. The Actual vs Goal column lets you understand the gap from the goal in $ value. You can switch to Forecast vs Goal by clicking on the link below the header.
      Tabular_View_Revenue_Center_Totango.gif

Breakdowns

View breakdown for net retention rate, growth, renewal, upsell, downgrade, churn by:

  • Success manager
  • Status
  • Health profile

mceclip13.png

Trends

View time-based analysis for net retention rate, revenue (ARR) and revenue (upsell and renewal). You can also switch to tabular view or override different period values.

mceclip14.png

Download forecasting data

To analyze forecasting data in a spreadsheet or export the data to other systems or dashboards, export data for the selected time period using the Download button from the upper, right corner. The following values are included:

  • Renewable accounts
  • Renewable ARR
  • Starting ARR
  • Upsell ARR
  • Lost ARR
  • Net growth
  • Ending
  • Starting accounts
  • Upsell accounts
  • Lost accounts
  • Ending accounts
  • Retention rate
  • Net retention rate
  • Churn rate
  • Logo churn

FAQs

What does renewal state vs forecast renewal state mean?

In the export for renewables, renewal state indicates actual and forecast renewal state indicates predicted. View new contract value and forecast new contract values for context.

For example, Account 1 has $50K contract value and $60K forecast new contract value. Renewal state is retention with forecasted renewal state predicted for upsell. Account 2 has $5K contract value and $12,345 new contract value. Renewal state is upsell despite forecast renewal state projected for churn ($0 forecast new contract value).

mceclip15.png


Question: Can I create segments from revenue data

Answer: Yes, you can use a forecast state, forecast contract value, and forecast period as filters in segmentation.


Question: I don’t see any upsells, downgrades, or churn forecasted accounts, but still the forecasted net retention rate is 100%. Why?

Answer: It seems like all your accounts are forecasted as renewal. In this case, your forecast is that all your renewable customers will renew, and this is represented in the net retention rate.

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