Revenue Alerts allow you to be notified when revenue movements occur within your customer base. When a subscription’s MRR changes, the movement is compared to your Revenue Alert settings to determine if a notification should be sent.
Revenue Alerts monitor changes in a subscription’s MRR value. A subscription’s MRR value is composed of revenue from Products, On/Off Components, Quantity-Based Components, and Metered (Usage) Components. One-time charges and one-time invoices are ignored.
Configuring Your Settings
Revenue Alerts are available to users with financial permissions. Settings are configured per user and are located under the Tools section in the sidebar menu.
Settings can be configured to monitor an MRR change percentage or an MRR movement amount, or both.
You can also optionally specify a number of months for which the change must occur over. This can be helpful for monitoring changes in MRR across multiple billing periods.
If you choose to specify a monthly duration, the following formula will be used:
When a change in a subscriber’s MRR occurs, we’ll calculate the MRR value at the time of the revenue movement (Current MRR) and at the beginning of the duration specified in your settings (Starting MRR). Using these two MRR values, we’ll calculate the percentage change as well as the movement amount.
Revenue Alerts can be delivered via email and in-app notifications. Delivery will follow your General Alert settings.
Catching Potential Churn
Consider the subscription revenue in the chart above. The subscriber’s revenue decreases about ~15% month to month over the 4 months leading up to a cancellation in August. However, looking at Q2 as a whole, MRR decreased about ~50% before cancellation.
Configuring your settings to monitor changes in MRR over multiple months (or billing periods) can help spot trends in revenue changes.