This document will guide you through the configurations available in the Transactions tab under Administration. These configurations pertain to LRM 1.0 functionality, as opposed to LRM 2.0. We recommend that new customers use LRM 2.0.
- Navigate to Administration > Transactions.
In the Transactions tab you will see 4 sections:
- Booking Types
- Transaction Line Items
- Churn Reason
- Churn Tab Settings
- Additional Configuration
Gainsight comes stocked with the following Booking Types:
New Business: This is the first transaction with the customer. The effective date for the first transaction is also known as the Original Contract Date and is used for calculating the customer lifetime.
Upsell: An Upsell represents any financial transaction that can result in an increase in the recurring revenues and/or additional one-time’ revenue.
Downsell: A downsell represents any financial transaction that can result in a decrease in the recurring revenues and/or in one-time revenue.
Renewal: A renewal epresents a renewal of the current transaction for the term specified against the transaction. This assumes that the customer is renewed with the same recurring revenues. The renewal date and current MRR is auto populated in the user interface based on the current MRR and User counts.
Renewal with upsell: A Renewal with Upsell is a combination of renewal and upsell transactions posted as a single transaction. This can be used when the customer is renewed with an increase in the recurring revenues and/or user counts and/or one-time revenues.
Renewal with downsell: A Renewal with Downsell is a combination of renewal and downsell transactions posted as a single transaction. This can be used when the customer is renewed with a decrease in the recurring revenues and/or user counts and/or one-time revenues.
Debook: A Debook transaction is used for posting one off adjustments to the earlier transactions.
Churn: A Churn transaction is used for recording customer churn. When a churn transaction is posted against the customer, Gainsight automatically passes a negative entry that sets the customer’s MRR and User counts to zero. You can optionally configure additional line items to post adjustments to other line items such as one time revenues.
Transaction Line Items
Transaction line items are used to capture the details of transactions. Line items provide the granularity that you need for recording the transactions,Gainsight does include some default line items including:
Add Transaction Line Items
To add a new Transaction Line Item click New and type in a Name then choose a Type:
Recurring revenue: Line items tagged as Recurring Revenue line items are used for calculating key metrics such as Monthly Recurring Revenue (MRR) and Annual Subscription Value (ASV). If your configuration includes multiple recurring revenue line items, then data against these line items are aggregated for reporting purposes.
One time revenue: Line items tagged as One Time are used for separately showing the one-time revenues realized from the customer and are NOT included in the calculation of MRR and ASV.
User count: Line items tagged as User Count work similar to the recurring revenue line items, except that these are used to represent the # users and is used for reporting on the licensed users.
Statistical: Line items tagged as Statistical are used to store any other numerical data against the transaction which cannot be categorized into the above 3 line item types. While this data is not directly shown in Gainsight directly, except for the edit transaction user interface, it is available for usage in any custom reports
A new Transaction Line Item is now added to Gainsight but is not used by any of the Booking Types.
Churn transactions in Gainsight can be tagged with Churn Reason. This data is used to drive churn analytics across the organization. Churn reason currently allows only one churn reason to be selected and it is recommended that the churn reasons are setup keeping this in mind. Gainsight comes stocked with some default Churn Reasons which can be edited or deleted. To add a new Churn Reason click NEW.
Churn Tab Settings
The Churn Tab Settings section allows you to configure the Churn tab in Gainsight to meet your needs.
Click on edit settings to configure additional items.
- Additional booking types to show in Churn - If you prefer to use the Churn tab to show revenue lost as opposed to just churned items you could opt to include Downsell and/or Renewal with Downsell.
- Show Renewal based Churn - Check this box if in Churn Analytics you want the Churn % on Renewal to be based on renewals available for that period versus renewals for all time. As an example, if you had a 3 year contract that was not up for renewal this year it would not be included in the calculation when this box is checked.
Edit BOP (Beginning of Period)
Check the box to "Use manually entered BOP for Churn calculation" to enable the ability to set your own Customers, Users, MRR and ASV to show in the chart at the top of the Churn tab. If this box is not checked numbers will be pulled in based on LRM. If you are not using LRM you will want to manually enter the Beginning of Period numbers.