What is it?
Connect CRM Closed-Won Opportunities with the Customer Contracts Template to model SaaS recurring revenues, and calculate recurring revenue metrics such as MRR / ARR, Billings, Bookings, Renewals, Downgrades, and more.
Creating a Customer Contracts Template
Under a Workbook
Click the "+" button to open the Create dropdown
Select Customer Contracts Template
How are monthly Contract revenues calculated?
The monthly values for a contract Line Item show the monthly expected revenue for the contract. It takes the Bookings value and divides it by the Contract Term to calculate the monthly value. Monthly values start on the Start Date of the contract.
Output Customer Contract Metrics
New Customers
The number of new customers that appear based on the Start Date.
Churned Customers
The number of customers that do not renew based on the End Date of the contract. The end month of the contract is calculated from the Start Date and adding the Contract Term.
Active Customers
The number of customers that are currently within the contract.
Billings
The total value of all billings for the month. Billings are based on the Start Date and the Invoice Term of the contracts. This is useful for calculating cash flow based on invoices.
Bookings
The total value of all bookings based on the Close Date. This is useful for sales teams to calculate the value of all contracts they have signed.
Renewals
The total value of the bookings that are renewed after the end of a contract. If a contract has an expansion the difference will go to Upgrade bookings and if the contract was less than the original the whole value goes to Downgrade bookings
Upgrade Bookings
The total value of bookings that are renewals and an increased value over the original contract. This tracks the value of the upgrades only. To get the value of Renewals and Upgrades add both metrics together.
Downgrade Bookings
Total value of renewals that have decreased compared to the original contract. This tracks the total value of the downgraded renewal values.
MRR
The sum of the monthly values of all contracts. The monthly recurring revenue.
ARR
The MRR multiplied by 12. The annual recurring revenue.
New MRR
The sum of all new billings MRR for that month.
Renewal MRR
The sum of all new renewal billings MRR for that month.
Churned MRR
The difference between last month’s MRR + this month’s MRR and this month’s MRR.
Upgrade MRR
The positive difference between last month’s MRR + this month’s MRR and this month’s MRR for contracts that are renewals and expansions.
Downgrade MRR
The negative difference between last month’s MRR + this month’s MRR and this month’s MRR for contracts that are renewals.
Committed MRR
The MRR if calculated via the Booking Date instead of the Start Date.
Committed ARR
The committed MRR multiplied by 12.
ARPU
Committed MRR divided by Active Customers. The Average Revenue Per User.
ACV
The ARPU multiplied by 12. The Annual customer value.
Net Dollar Retention
(Beginning MRR + Upgrade MRR - Downgrade MRR - Churned MRR) / Beginning MRR. Calculates how much MRR your company is retaining month by month.
Gross Dollar Retention
1-((Churned MRR + Downgrade MRR)/ Beginning MRR). Similar to Net but doesn’t take into account upgrades and will max out at 100%.
Customer Contract Dimensions
Name
The name of the contract. Not used for calculations.
Customer
The customer name for the contract. Used to calculate customer-related metrics: New Customers, Churn, Active, ARPU.
Bookings
The total value of the contract. Used to calculate almost all metrics in this template.
Close Date
When this contract is closed by the sales team. Used to calculate primarily Bookings, and Committed MRR / ARR.
Start Date
When the contract actually starts. Used to calculate billings and MRR/ARR.
Contract Term
How long does the contract last in months from the Start Date. Used to calculate churn/expansions.
Auto Renew
A toggle to set the contract to auto-renew when the contract term is over. This saves time so you do not need to set up a new line item for a renewal with the same values as the original contract.
Invoice Term
How often the customer gets billed in months. For monthly billing, the value should be 1, for annual billing it should be 12. Determine Billings and the MRR/ARR values.
Contract Type
Choose between New, Renewal, and Expansion. Controls where the values will appear within the New, Renewal, Expansion, and Downgrade MRR values.
Integrations Available
Sync any connected CRM integration.
Supported Data Fields
Name
Customer
Bookings
Need to confirm
💡 Basis has a one-way sync with your CRM. Changes made to your Customer Contracts in Basis, remain in Basis. We never publish any changes back to your provider.
Enhancing Your Customer Contracts Template with Add-ons
Group-by Customers
It is common to group by Customer to keep the organization clean and view revenue by Customer.
Dimensions
Sales Rep
You can add a Sales Rep dimension to group contracts by sales rep and create MRR/ARR rollups for each rep.
Limitations
N/A