Sales | Deals | Recurring Revenue Best Practice

Best practice for managing recurring revenue upgrades, downgrades and churn

New Recurring Revenue

1. Create as a separate deal to one-off items
2. Use a separate pipeline
3. Set the Recurring revenue inactive date to the contract end date
4. Set the Recurring revenue inactive reason as Renewal
5. Create a Workflow 60 days prior to the Recurring revenue inactive date to create a new Deal within the Renewals Pipeline assigned to the current Deal Owner
   1. Copy key Deal details
   2. Set Recurring revenue deal type as Renewal
   3. Set Close date as 60 Days from Create Date

Permanent Upgrade

E.g. Monthly retainer is increased

1. Set the existing recurring revenue Deal Recurring revenue inactive date as the new upgrade date
2. Set the Recurring revenue inactive reason as Upgrade
3. Create a new recurring revenue Deal for the new recurring revenue Amount with the Recurring revenue deal type as Upgrade

Temporary Upgrade

E.g. Seasonal increased spend

1. Create a new Deal and set the Recurring revenue deal type as Upgrade
2. Set the Recurring revenue inactive date as the temporary upgrade end date
3. Set the Recurring revenue inactive reason as Upgrade

Permanent Downgrade

E.g. Monthly retainer is decreased

1. Set the existing recurring revenue Deal Recurring revenue inactive date as the new downgrade date
2. Set the Recurring revenue inactive reason as Downgrade 
3. Create a new recurring revenue Deal for the new recurring revenue Amount with the Recurring revenue deal type as Renewal

Temporary Downgrade

E.g. Seasonal decreased spend

1. Create a new Deal and set the Recurring revenue deal type as Downgrade
2. Set the Recurring revenue inactive date as the temporary downgrade end date
3. Set the Recurring revenue inactive reason as Downgrade
4. Enter the downgrade amount as the Recurring revenue amount

e.g. Currently spending $5Kp/m and we want to downgrade to $3Kp/m for 3 months, Recurring revenue amount = $2Kp/m