New vs. Existing Customer Revenue
Q: What's the variable in the Startup Financial Model app that determines revenue from new customers versus existing customers and how is that determined?
Your inputs that affect new vs. existing (and lost customers and net customers) are as follows:
Sales Model: When entering each Offering, you would select either One-time vs. Recurring sales model. A one-time sales model means that you are only selling the customer once, so all sales each month are new and all customers from the previous month do not carry over, whereas, with a recurring model, all retained customers from previous periods carry over. See this support blog post on Recurring Revenue Assumptions for more details.
Customer Retention/Churn: This is only relevant for Recurring Revenue offerings, such as a SaaS subscription or a maintenance and support contract, and is calculated based on the contract length and your retention rate. See this support blog post on Churn Rate Assumptions for Recurring Offerings for more details.
Revenue for New vs. Existing Customers: If you drill into the Sales report details by clicking on the “+” sign to view the item detail and the monthly detail, you can see all of the specific information on Existing, New, Lost, and Net Customers for each month. Only the Net Customer number is used for calculating revenue. The total Revenue is the total number of net customers multiplied by the relevant pricing (our app allows you to adjust pricing up or down over the life of your plan) for that month as shown below:
In addition, if you continue to scroll down the Sales detail report to the Revenue Detail section for each offering, you can see the breakout of Revenue by New vs. Existing customers by month, quarter, and year (this is the yearly view):