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* [ADD] subscriptions: add base documentation for Subscriptions * [ADD] subscriptions/sales_flow/create_a_quotation: new content * [ADD] subscriptions/sales_flow/renewals: new content * [ADD] subscriptions/sales_flow/upselling: new content * [ADD] subscriptions/sales_flow/closing: new content * [ADD] subscriptions/reporting/subscription_reports: new content
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61 lines
3.0 KiB
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=================================
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Discover our subscription reports
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=================================
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As we now know well enough, understanding how our business is going and where it is going is the key
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to success. This is even more the case when we offer subscription services or products.
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Before getting to the heart of the matter, it is very important to recall certain concepts essential
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to the proper understanding of the following reports:
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- **Monthly Recurring Revenue (MRR)**: MRR is arguably the most important metric for subscription
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businesses. Indeed, it shows the revenue earned with subscription-based products or services every
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single month. It is a consistent number that you can use to track all your recurring revenue over
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time, in monthly increments.
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- **Annual Run-Rate (ARR)**: ARR is the yearly version of MRR. Based on the current MRR, you can estimate
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the coming year's performance with the Annual Run-Rate. However, this estimation does not take
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variations and growth into account.
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.. image:: media/reports_1.png
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:align: center
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:alt: Difference between MRR and ARR in Odoo Subscriptions
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- **Non-Recurring Revenue (NRR)**: NRR shows the revenue earned for everything else than subscription-based
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products or services. This includes gains of a rare or unique nature that are unlikely to occur in
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the ordinary course of businesses.
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- **Customer Retention**: This concept consists of engaging existing customers to continue buying
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products or services from your business. As you may know, customer retention is quite a challenge
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because you must prove yourselves worthy of your customers' trust.
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- **Churn Rate**: Also known as the rate of attrition or customer churn, the churn rate can be defined,
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in this case, as the percentage of service subscribers who discontinue their subscriptions within a
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given time period. We can distinguish two types of Churn:
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- **Logo Churn**: It corresponds to the subscription cancellation rate.
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- **Revenue Churn**: It corresponds to the monthly recurring revenue loss rate.
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.. note::
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Let's imagine an increase of 2$ on a service subscription.
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- We loss three customers out of the initial 20 which gives us a **Logo Churn** of 15%.
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- Therefore, the 56$ of MRR difference out of the initial 600$ gives us a **Revenue Churn** of 9,33%.
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.. image:: media/reports_2.png
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:align: center
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:alt: Difference between logo churn and revenue churn in Odoo Subscriptions
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As a reminder, though they seem to evolve in the same direction most of the time, it might not be
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the case all time.
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- **Customer Lifetime Value (CLV)**: Very important measure which indicates how much revenue can be
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expected for a customer during his/her entire contract. This approach emphasizes the importance of
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customer retention, shifting our focus from a quarterly or yearly approach to a long-term vision.
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Check out the different kinds of reports you can access from the **Odoo Subscriptions** application.
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Subscription analysis report
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