Problem statement:
The client faced difficulties in accurately tracking recurring revenue due to a mix of subscription-based and one-time fees within their deals. Each deal included a combination of products, such as a SaaS subscription and a one-time implementation fee, making it challenging to segregate and track Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) accurately. This limitation impacted the client’s ability to assess revenue health, as tracking MRR and ARR is a key industry standard.
Scope of Engagement:
Arbaan developed a custom app within the client’s Freshsales portal to address this challenge.
Key features included:
– Automatic Updates to MRR and ARR: The app updates MRR and ARR fields when a deal is created or updated, accurately distinguishing between subscription-based and one-time fee products.
– Trigger Verification and Calculation: When qualifying products are added or updated, the app verifies the pricing type and, if applicable, updates the MRR and ARR fields in both the deal and account modules.
– Comprehensive Account-Level Updates: For each update, the app checks all deals linked to the associated account, sums the MRR and ARR values, and reflects the total at the account level.
– Precise MRR and ARR Calculations: MRR is calculated based on monthly subscriptions only, while ARR is computed as 12 times the total MRR.
Implementation Process:
The implementation involved developing:
1. A custom Freshsales app with real-time trigger actions for deal creation and updates.
2. Verification and calculation logic to ensure accurate MRR and ARR updates across deal and account modules.
Value delivered to customer:
This solution provided the client with clear and consistent revenue tracking, enhancing their ability to monitor and project revenue accurately. By automating the MRR and ARR calculations, the client gained insights into recurring revenue metrics, aligning with industry standards and supporting better financial forecasting.