Leakage
Total Revenue Leakage
This metric gives the total invoiced amount lost due to discounts and coupons.
Explanation of metric
This metric summarizes the revenue leakage for each coupon during the period. It provides insights into the impact of discounts and coupons on overall revenue.
Note
This report is available with RevenueStory (RS) premium only. To enable this metric,contact support.
How it's measured
Total Revenue Leakage = Total amount of coupons redeemed and the total invoice amount generated when the coupon is used.
Reading
An upward trend indicates higher amounts lost due to discounts and coupons.
Interpretation
This metric provides insights into the total revenue lost due to discounts and coupons. By understanding the total revenue leakage, you can assess the financial impact of discounts on your overall revenue. It provides you with the total cost of discounting strategies, which you can compare with the total MRR in that period to assess the performance of your discounts.
Example
During a promotional campaign in a given period:
- Discount amount for Coupon 1: $4,500
- Total Revenue Leakage from Coupon 1: $4,500
In this case, the total revenue leakage value will reflect that $4,500 was lost due to a coupon discount from coupon 1, which indicates the total revenue leakage without assessing the net gain.
Total Revenue Leakage by Coupon Type
This metric gives the total invoiced amount lost due to discounts and coupons segmented by coupon type.
Explanation of metric
A chart represents the total revenue lost from redeemed coupons during a specific period, segmented by coupon type, for example, one-time coupons, lifetime coupons, and so on.
How it's measured
Total Revenue Leakage by Coupon Type = Total amount of coupons redeemed during the period per coupon type
Note
Revenue loss due to one-time coupon, forever coupon, and so on.
Reading
An upward trend indicates an increase in revenue loss, which is undesirable.
Interpretation
Revenue leakage refers to unnoticed or unintended revenue loss. This metric helps identify revenue loss due to various coupon types, aiding in evaluating discount strategies.
Example
In a given quarter, a company tracked revenue leakage across different coupon types:
- Revenue Loss from One-Time Coupons: $7,500
- Revenue Loss from Lifetime Coupons: $4,000
- Revenue Loss from Recurring Coupons: $6,000
This breakdown of total revenue leakage helps the company assess the effectiveness of each coupon type. For instance, while one-time coupons led to the highest revenue loss at $7,500, the overall performance of lifetime and recurring coupons could suggest whether the long-term customer value compensates for the discount.
Total Revenue Leakage by Discount Type
This metric gives the total invoiced amount lost due to discounts and coupons segmented by discount type.
Explanation of metric
A chart represents the total revenue lost from discounts during a specific period, segmented by discount type.
How it's measured
Total Revenue Leakage by Discount Type = Total amount of discounts applied during the period per discount type.
Note
This metric is available with RevenueStory (RS) premium only. To enable this metric,contact support.
Reading
An upward trend indicates an increase in revenue loss, which is undesirable.
Interpretation
This metric helps identify the revenue leakage from each type of discount, aiding in the evaluation and adjustment of discount strategies to minimize unintended revenue loss.
Example
In a given quarter, the company tracked revenue leakage from different discount types:
- Revenue Loss from Percentage-Based Discounts: $8,000
- Revenue Loss from Fixed Amount Discounts: $5,500
- Revenue Loss from Volume-Based Discounts: $3,200
By analyzing the revenue leakage by discount type, the company can assess which discount types are contributing the most to lost revenue. For instance, the $8,000 loss from percentage-based discounts may prompt a review of discount thresholds, while the lower leakage from volume-based discounts could indicate a more sustainable discounting strategy.
Revenue Leakage Summary
This metric summarizes the invoiced amount lost for each coupon and discount.
Explanation of metric
This metric provides a detailed summary of revenue leakage due to each coupon type and discount during a specific period. It displays the number of times each coupon or discount was redeemed, the total value of the revenue lost due to these redemptions, and the new revenue generated from using these coupons or discounts.
How it's measured
Revenue Leakage Summary = Total number of coupons redeemed, total invoice amount generated when the coupon is used during a period.
Note
- Includes only first-time invoices.
- Taxes are excluded.
Reading
An upward trend indicates increased revenue loss due to discounts and coupons.
Interpretation
This report helps evaluate the performance of each coupon or discount by comparing the revenue leakage with the new revenue generated. It provides insights into how well each coupon performs, allowing you to decide on strategies and adjustments.
Example
In a given month, the Revenue Leakage Summary report shows:
Coupon Type A:
- Redemptions: 150
- Revenue Loss: $4,000
- New Revenue Generated: $30,000
Discount Type B:
- Redemptions: 100
- Revenue Loss: $3,500
- New Revenue Generated: $20,000
Coupon Type C:
- Redemptions: 50
- Revenue Loss: $1,800
- New Revenue Generated: $10,000
By reviewing this summary, the company sees that while Coupon Type A leads to the highest revenue loss ($4,000), it also generates the most new revenue ($30,000), making it a more effective strategy compared to Discount Type B, which has a similar leakage but generates less revenue. This insight can guide decisions on refining coupon and discount offerings.
Total Amount Voided
This metric gives the total value of all the voided invoices.
Explanation of metric
This metric tracks the total value of all invoices voided during a specific period. Voiding an invoice means the balance is zero, though the amount remains unchanged. This is typically done to correct errors, address customer requests, or handle order cancellations.
How it's measured
Total Amount Voided = Total Invoice amount with status as voided during a period.
Note
Taxes are excluded.
Reading
An upward trend indicates an increase in the total value of voided invoices, which could suggest more corrections or cancellations.
Interpretation
Understanding the total amount voided helps identify invoicing accuracy, customer satisfaction, or order processing issues. Common reasons for voiding invoices include:
- Incorrect invoice amounts.
- Customer requests for changes.
- Order cancellations. Invoices with associated payments cannot be voided directly; payments must first be removed before voiding the invoice.
Example
In a given quarter, the Total Amount Voided metric report shows:
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Month 1:
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Voided invoices due to incorrect billing: $2,000
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Voided invoices due to customer-requested changes: $1,000
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Month 2:
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Voided invoices due to cancellations: $2,500
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Voided invoices due to customer-requested changes: $1,500
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Month 3:
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Voided invoices due to incorrect billing: $3,000
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Voided invoices due to cancellations: $4,000
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In total, the voided amount for this quarter sums up to $14,000, showing an upward trend. This rise in the voided amount highlights possible inefficiencies in the invoicing or order processing systems, especially during Month 3 where a significant amount was voided due to cancellations. This insight can lead to a deeper investigation into the causes, whether it's related to invoice accuracy, customer satisfaction, or internal order management issues.
Total Write-Off Amount
This metric gives the total value of all written-off credit notes.
Explanation of metric
This metric displays the total value of credit notes written off during a specific period. The chart illustrates the value of these write-offs, categorized by reason code as Write-Off. A point-in-time KPI also shows the value for the current period, including differences and percentage changes compared to previous periods.
How it's measured
Total Write-Off Amount = Total value of Credit Notes during the period.
Note
Taxes are excluded.
Reading
A downward trend suggests reduced write-offs, indicating improved credit management or fewer issues requiring write-offs.
Interpretation
The Total Write-Off amount helps assess the extent of credit notes issued as write-offs, reflecting issues such as uncollectible accounts or discrepancies in invoicing. In Chargebee, writing off an invoice involves issuing a credit note and marking it with the reason code "Write-off." The write-off amount is then adjusted against the relevant invoice.
Example
In a given period:
- Number of Credit Notes generated: 2,200
- Average amount Written-Off per Credit Note: $25
- Total Write-Off Amount = (2,200 × 25) = $55,000
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