Churn KPIs Dashboard Overview

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The MRR Churn application is loaded with hundreds of metrics and KPIs, and more continue to be added as the core model expands in depth and scope to cover additional data sources. One of the primary ways to highlight both absolute and relative KPI performance levels is to benchmark a BU against other BUs, and that is the primary theme of this set of dashboards.

Multi-level drill-downs from aggregate to granular KPIs, as well as from aggregate dimensional groupings to individual dimension members, are another common theme in these dashboards. In particular, all changes in MRR by currency amount and percentage are broken down in multiple levels of aggregation, and there are two different rollups available:

  1. A traditional “Growth View”, which groups the changes vs. the prior period amount by organic growth, organic decline, and net acquired growth; and
  2. A “Net Churn View”, which groups the same lowest level changes by net churn category, including net customer churn, net product churn, net price & quantity churn, net FX churn, and net other churn.

With respect to dimensional groupings and drill downs, all KPIs can be easily viewed by time (year, quarter or month), BU, legal entity, customer segment, product and product segments, currency type (OC, LC or RC), and, where applicable, data source. Although there are many other KPIs not listed here, the KPIs that are highlighted or implicit in this set of dashboards include the following:

Monthly Recurring Revenue MRR TTM
Customer Count Lifetime Monthly Recurring Rev.
Revenue Billed Attrition Revenue (Customer & Product)
Deferred Recurring Revenue Attrition % (Customer & Product)
Product Count Customer Revenue Retention %
DCF Customer Lifetime Value Annualized Recurring Revenue
Cust. Lifetime value Net of COGS Average Revenue per Customer
Cust. Lifetime value Excl. COGS Average Revenue per Product
Lifetime to date Monthly Recurring Revenue Average DRR per Customer
Lifetime to date Months of Cust. Relationship Avg. Price Overall – Current Period
Average Ltd Revenue per Current Customer Net Price Change % vs PY/PM
Avg. Lifetime Months of Cust. Relationship Net Price Increase Count % vs PY/PM
Average Ltd Revenue per Lost Customer Price Inc. Rev. vs Lost Cust. Rev. Ratio
Avg. Lifetime Months per Lost Customer PY Price Inc. Rev. vs Lost Cust. Rev. Ratio
Cust. Count Net of BU shared 2PY Price Inc. Rev. vs Lost Cust. Rev. Ratio
Cust. Count Net of BU shared & lapses Saved (Reactivated) vs Lost Revenue Ratio
Customers Currently shared (Migrating) Total Lost Revenue
Customers Lapsed Total Lapsed Revenue
Products Lapsed Customer Revenue Retention %
Product Penetration % Customer Count Retention %
Estimated Avg. Customer Lifetime Months Quick Ratio (Organic Growth/Organic Decline)

And >400 more KPIs focused only on breaking down MRR (YoY and MoM, both by change amount and change %)

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Customer Base Summaries by BU

Visualize a summary of the core KPIs for two levels of child BUs below the selected parent BU, all in one dashboard view. It becomes very easy to see exactly how MRR, Customer Count, DRR and Billed Revenue are distributed amongst a portfolio of BUs. An alternative measure of overall customer count is also provided to exclude the minor impact from customers shared across >1 BU, and to add back customers to the count that are only temporarily inactive (with zero MRR) in the selected period.

Churn Analysis by BU

Break down the MRR net churn analysis into 30+ categories of changes, both YoY and MoM. Compare the net churn by category across all child BUs in the BU hierarchy, both in terms of currency amount and as a percentage of the prior period MRR. Reconcile “MRR”, which is the more accurate management reporting measure, to “MRR per the GL”. The latter includes recognition timing differences caused by late billings after month end close, as well as FX errors embedded in the local currency amount used for future revenue recognition. Both of these differences are usually immaterial distortions of true MRR due to artificial financial reporting cutoffs, but they are very often material distortions of true MRR for any one customer and for other analytical purposes. This is why these artificial month-end close distortions are excluded from the more prevalent “MRR” measure and its related KPIs in the application.

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Price Changes by BU

Accurately measure and analyze average price change trends by BU, after excluding all other distorting changes in MRR, such as FX impacts, product mix impacts, quantity billed impacts, etc. Increase the accuracy of the price change % measurement even more by optionally including in the denominator only the prior MRR for any line items (by customer) that exist both in the prior period and current period. Highlight which BUs are not increasing prices across the board by trending the % of product line items with a YoY increase in prices. As an assessment of the price elasticity of demand and the ROI on price increases, examine to what extent price increase revenue from the current year, a year ago or two years ago may be increasing lost customer revenue this year.

Lifetime Value Per Customer by BU

Compare by BU via trending analysis the MRR per Customer, the DRR per Customer, and the Estimated Average Customer Lifetime Months, where the latter is based on the YoY attrition rates over the relevant trending periods. Highlight changes in estimated lifetime value (LTV) per customer, which can be calculated in three optional ways: 1) Excluding COGS, which shows the highest LTV; 2) Net of COGS, which lowers LTV to a more realistic undiscounted LTV; and 3) Net of COGS and factoring in the discounted value of future cash flows, which shows the lowest and most accurate measure of customer LTV on an aggregate basis.

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Shared Customers by BU

Clearly identify which customers at a parent BU level are shared across more than one child BU, which is important for coordinating sales and support across multiple BUs when servicing and billing such customers. A second and alternative customer count measure exists to exclude the impact of these shared customers from the aggregate customer count across multiple BUs. A third, and yet another alternative, customer count measure exists, which excludes both these shared customers and the reductions in the count total due to temporary lapses in MRR that are later proven to be lapses after future reactivations/billings.

Product KPIs

Highlight MRR breakdowns by product grouping, both for the current period and as a trend over time. Analyze the trending of the various components of Net Product Churn by BU, and then dig deeper into the detailed churn components by product to identify where the greatest fluctuations in MRR are coming from at the product level for the selected BU in question.

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Penetration % by BU and Product

Report on the complete list of active product items with respect to the BUs and periods in question. Analyze the total MRR, the Average Revenue per Product (ARPP), and the ARPP % of the total for the BU in question. Search for base sales opportunities via the Product Penetration % KPI for each Product Item (as a % of the Customer Count total).

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