Retained Revenue Impact Reporting
We track the Deflect Rate and the Save Rate as key metrics in Chargebee Retention, but these alone do not tell us the full picture of the impact and ROI that your Retention initiative is generating. To get this level of insight, we need to add Retained Revenue metrics to our existing in-app reports in Chargebee Retention.
Retained Revenue metrics allow you to track what % of your deflects and saves ultimately go on to buy again, thus completing a First Time Repurchase Order. We also can then track not only their first order post Chargebee Retention session, but also the cumulative repurchase orders that occur beyond that over time. This set of metrics gives us insight into how much revenue you have retained from past cohorts, and sheds light into what we can expect from future cohorts as well. This allows you to start to put together a view of the overall ROI and impact on your revenue and customer LTV that your Retention initiatives are having.
Retained Revenue Impact Reporting is now available for customers who are using our Chargebee Billing Integration and Recharge Integrations. If you are using a different billing integration and would like to see Retained Revenue Impact Reporting enabled for this integration as well, please contact email@example.com.
To enable Retained Revenue Reporting, simply navigate to Settings > Setup > Billing System and you will see the configuration available if you have already integrated Chargebee Billing with Chargebee Retention. Once this setting is enabled, Chargebee Retention will start tracking the your repurchase metrics and add them to various reports in the admin app. Read on for more details on this feature.
How Retained Revenue Impact Metrics are Tracked
Chargebee Retention integrates with the Invoices object in your billing system to track orders that occur after the initial Cancel Session. We track two different sets of metrics tied to invoices that occur after the session:
- Repurchases: Invoices that are paid after the initial session for Deflects
- Winbacks: Invoices that are paid after the initial session for Cancels
This allows us to track Repurchase activity for both sessions that produce a Deflection and a Cancel. We will only count an invoice if it is paid after the initial Cancel session occurs. If the invoice is paid prior to the session, it will not be included in the calculation.
Note: we filter out "one-time" orders that are not tied to a subscription ID today. If you would like to see these orders included in your Chargebee Retention reports, please reach out to firstname.lastname@example.org and we will log this as a feature request.
We then use this invoice logic to generate several metrics tied to an individual subscribers invoices. These include:
Repurchase Customer Metrics
- First repurchase order: first time a new invoice is paid post deflect event
- Total # of repurchase orders: total invoices that occur post deflect event for the subscriber
- First time repurchase amount: repurchase revenue for the first invoice post deflect event
- Cumulative retained revenue: total repurchase revenue for the subscriber for all of the invoices post deflect event
Winback Customer Metrics
- First winback order: first time a new invoice is paid post cancel event
- Total # of winback orders: total invoices that occur post cancel event for the subscriber
- First time winback amount: winback revenue for the first invoice post cancel event
- Cumulative winback revenue: total winback revenue for the subscriber for all of the invoices post cancel event
We then also create the following aggregate metrics that get surfaced in our various reports:
Repurchase Aggregate Metrics
- First time repurchase rate: # of first time repurchases / Total saves + watch list for the cohort (does not include lost-deflects)
- Avg. # of repurchase orders: # of repurchases / # of customers who repurchase
- Avg. value of repurchase orders: $ value of repurchases / # of repurchases
Winback Aggregate Metrics
- First time winback rate: # of first time winbacks / Total cancels (includes lost-deflects)
- Avg. # of winback orders: # of winbacks / # or customers who winback
- Avg. value of winback orders: $ value of winbacks / # of winbacks
Retained Revenue Data in the Customers Report
The first place we include Retained Revenue metrics is in the existing Customers Report. We have added two additional tabs to this page, one for Repurchases and one for Winbacks.
This allows you to pull a list of all the customers who Repurchased and all those who were a Winback for further analysis and breakdown. The default fields for each of these views are:
- Repurchases: Start Date, Customer, Experience, Audience, Accepted Offers, Chargebee Retention MRR, First Repurchase Date, Number of Repurchase Orders, Cumulative Retained Revenue
- Winbacks: Cancel Date, Customer, Experience, Audience, Cancel Reason, Chargebee Retention MRR, First Winback Date, Number of Winback Orders, Cumulative Winback Revenue
Keep in mind that the Winbacks will be tied to the Cancel Date where as the Repurchases will be tied to the date of the initial session that produced the deflect.
Retained Revenue Data in the Experience Performance Report
We will be adding the following key metrics to the Experience Performance Report as options that can be selected from the column selector:
- First Repurchase Order
- First Time Repurchase Rate
- Cumulative Retained Revenue
- Total # of repurchase orders
- Avg. # of repurchase orders
- Avg. value of repurchase orders
- First Winback Orders
- Winback Rate
- Cumulative Winback Revenue
- Total # of winback orders
- Avg. # of winback orders
- Avg. value of winback orders
- % of cohort still paying
Keep in mind that the Experience Performance Report is a cohort based report in Chargebee Retention. When looking at Retained Revenue metrics, date cohorts are really important. If you are looking at a recent cohort for example, the First time repurchase orders and rates might be really low initially. These rates will increase over time, so it is best to ensure you are taking into account your date filters when analyzing these rates in the Experience Performance Report. Typically it is best to start looking at Retained Revenue metrics after a few cohorts have elapsed, aka a few weeks/months have gone by since the initial cancel session.
Retained Revenue Data in the Offer Performance Report
Retained Revenue metrics also are included in the Offer Performance Report, you now can view the First repurchase orders, First time repurchase rate, Cumulative retained revenue, and Total # of repurchase orders in this report. These additional metrics allow you to track how much revenue your Offer Accepts are driving over time.
You can add these metrics to the view using the columns selector.
Keep in mind that you will want to look at older cohorts of Offer accepts to track these metrics over time as newer cohorts will not have had time to complete a Repurchase post initial offer accept.
Retained Revenue Data in the Dashboard
Retained Revenue metrics are now included in the dashboard. The dashboard report shows the total retained revenue and number of repurchases within the selected period and helps you track changes to your retained revenue and first time repurchase rate over time.
For each day/week/month depending upon the time period selected, you can view retained revenue, number of customers who repurchased, first time repurchase rate, and percentage of this cohort still paying.
Retained Revenue Cohort Report
The Retained Revenue Cohort Report allows you to break out your Retained Revenue more granularly by cohort to track performance over time and gauge the impact of your cohorts on downstream revenue.
This report is a key asset in your analysis of your Deflection Funnel performance and how it relates to Retained Revenue for your business. If you want to understand the report further, view our doc on the Cohort report.
If you have any further questions about Retained Revenue Impact Reporting, please contact email@example.com.