Forecast revenues in 3 steps
- Add a Revenue Stream and define typical Customer Types (e.g. Small Customers) who buy your products/services and ,
- Link a Forecast Model to the Revenue Stream to define how many new customers per contract type you sign up over time,
- Add Revenue related Cost linked to getting, keeping and growing customers
Create a Revenue Stream by clicking the <+Add Revenue Stream> button and by selecting a suitable revenue model from the dropdown Revenue Stream Type (e.g. revenue model "Services (Customer Contract)". Enter the description for your Service Revenue Stream in the Widget Header (e.g. Consulting Service Revenues).
Lean-Case creates the Revenue Stream with a Revenue Template for the first Customer Type.
Revenue Models are available for many different revenues types, e.g. for revenues from
- Product Sales
- Marketplace Activities
- real Customer Contracts or
If you don't find a suitable revenue model among the available Lean-Case models, please contact us. We can customize your models faster than you can create a new model in Excel.
The figure below shows an example for Consulting Service Revenues created from 40% small and 60% large customers.
By adding several Customer Types to a Customer Contract Model, you can realistically model your mix of customers and define how many of your new customers correspond to each customer type. Customers Types often depend on the revenue type, e.g.
- Customer Sizes of a Service Model (Small, Medium and Large Customer) or
- Price Plans of a Subscription Revenue Model (Basic, Standard and Pro Plan)
Link a Forecast Model by selecting the Tab <Forecast>. The Forecast Model allows to define how many new customers of each customer type are contracted / buy your services every period. Select the Forecast Model which best suits your go-to-market approach.
The figure below shows an example for a revenue forecast which is driven by acquiring 10 new Customers per Month (for the above example: 4 small ones and 6 large ones).
A Forecast Models combines a Forecast Driver and a Forecast Target.
A Forecast Driver describes your Go-To-Market approach - how you scale your business over time, e.g. by the number of
- New Signups (e.g. if you sign-up users)
- New Customers (e.g. if you directly sell to customers online)
- New Sales Teams (e.g. if you follow an inside or outside sales model)
- New Sales Partners (e.g. Distributors or Point-of-Sales) or
- New Customers created by another revenue stream (e.g. by linking professional services with every new subscription customer)
The Forecast Target defines how many new customer can be signed up per month, e.g.
- per Sales Team
- per Sales Partner
- for a monthly Revenue Quota per Sales Team
- for a monthly Marketing Spent or
- by simply adding up real customer contracts
Add Revenue-Related Cost Link by selecting the other Tabs of the Revenue Model:
- Add cost to grow customers in Tab <Movements>
- Add cost to keep customers Tab <Cost of Goods Sold>
- Add cost to get customers in