Скачать или смотреть How Do We Count Expansion in Our Bookings Report and CRM? | SaaS Metrics School | Bookings Report

Welcome back to SaaS Metrics School! In this episode, I'm diving deep into the crucial aspects of expansion bookings and bookings reports within the realm of Software as a Service (SaaS) metrics. Join me, Ben Murray, as we unravel the complexities of tracking renewals, expansions, contractions, and everything in between in our CRM systems.

Are you grappling with how to handle price increases during renewals? Or perhaps you're unsure about recording contractions accurately? Fear not, because today's discussion is tailored just for you.

One of my students from the SaaS Metrics Foundation course raised a pertinent question: When a customer renews at a higher price without any additional features or product usage, how should we reflect this on our bookings report? Should it be classified under retention, or does it deserve its own spotlight?

Let's break it down together. First and foremost, let's establish what constitutes a booking. Whenever there's an outbound motion, whether it's a close one or close lost scenario, it culminates in an executed contract between us and our customer. This pivotal moment is recorded in our CRM system as a closed opportunity.

Now, when it comes to renewals, there's a spectrum of scenarios. If a customer renews at the same rate, it doesn't trigger any changes in our bookings report. However, if they opt for an expansion by increasing their payment, we need to capture the net incremental value. Picture this: they were paying $10,000 annually, but now they're committing to $12,000. We must document this $2,000 increase as it directly impacts revenue and commissions for our sales reps.

Conversely, if a customer decides to scale down their subscription, say from $10,000 to $8,000, we're obligated to reflect this contraction by showcasing the net decremental value. This meticulous attention to detail ensures our CRM setup aligns seamlessly with our bookings reports, facilitating accurate invoicing and revenue forecasting.

By mastering these intricacies, we pave the way for comprehensive revenue retention reports, where every expansion, contraction, renewal, and booking contributes to a holistic understanding of our SaaS metrics landscape.

So, if you're ready to elevate your SaaS metrics game and unlock the power of expansion bookings, hit that play button and join me on this enlightening journey through the world of SaaS Metric School.

Don't forget to like, share, and subscribe for more invaluable insights into optimizing your SaaS business. Let's revolutionize the way we track and manage SaaS metrics together!

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