Service revenues are created when selling services (e.g. training, consulting, ..). They are typically driven by Sales Volume (e.g. companies sell services by person days or hours) and a Selling Price (e.g. a day rate or an hourly rate).
Learn how to
- Create a Service Revenue Stream,
- Enter assumptions for your first Customer Type (Customer Contract) who is buying your services (e.g. Small Customers),
- Save your assumptions
Create a Service Revenue Stream by clicking the <+Add Revenue Stream> button and selecting the revenue model "Services (Customer Contract)" from the dropdown Revenue Stream Type. Lean-Case creates the Revenue Stream with a Service Revenue Template for the first Customer Type. Enter the description for your Service Revenue Stream in the Widget Header (e.g. Consulting Service Revenues).
Enter Assumptions for your first Customer Type
Enter assumptions for the Customer Type in the Widget Template:
- Customer Type Description (e.g. Small Service Customer)
- Average Contract Duration in Months (enabled when the customer buys more than one time)
- Sales Volume (e.g. the number of units such as person days sold one time or on a periodical basis) using Data Edit Group Sales Volume
- Selling Price per unit (e.g. the daily rate per person day) using Data Edit Group Selling Price
- Discounts in % which are granted on the selling price using Data Series Group Discount in %
- Billing Terms when the customer's invoice is created (at-the-start or at-the-end of the contract period) and
- Payment Terms to know time of invoice payment (cash-flow) (how many days after invoice creation customer must pay)
Save assumptions by clicking the <Save Stream> button.
By default, Lean-Case calculates revenues for one customer which is contracted in the first months of your Lean-Case. Let's assume the customer buys 100 units on a one-time basis at a Selling Price of $10, then this results in revenues of $1000.
Data Groups provide maximum flexibility for capturing assumptions with varying values over time.
- a Data Series Group combines an input field with a Table Icon to enter varying values for a data series.
- a Data Edit Group combines three input fields (one of which being a Data Serie Group) in one column with an Edit-Mode Switch for automatic and manual editing.
Follow the links below to dive into more detail on how to create a Service Revenue Stream:
- Add a Service Revenue Stream
- Edit inputs with varying values using flexible editing with Data Groups
- Define the Customer Mix by adding different Customer Types buying your services
- Define how many new customers you acquire by linking a Forecast Model
- Define how many customers renew their relation by defining Customer Churn (by default, Customer Churn for a Service Revenue Stream is set to 100%, i.e. no customers renew their relation)
- Add Revenue Related Cost linked to getting, keeping and growing customers, in particular