About Renewal Baseline Calculations
The future renewal automation engine provides two methods for measuring your Renewal Baseline. These methods are:
- As Sold: Copies all recurring items over at the previously purchased value. If multiple products have been purchased at different values, it will insert line items for those separate values.
- Lowest Price: Combines multiple purchases or lines where the same product has been purchased, and may have been purchased at different prices. This is helpful in scenarios where an initial purchase doesn't reach a tiered threshold of quantity, but a subsequent purchase does. In this scenario you would want the future renewal to be expected at the lower price for the full quantity.
- Uplifted: Copies all line items over just like "As Sold" but adds an uplift percentage that was specified at the Product Pricebook Level, or at the Line level. NOTE: You can still uplift renewals and create uplift renewal quotes but not have it impact the baseline using the As Sold or Lowest Price method.
As Sold Example
- Product A was purchased at $50.00 with a quantity of 10
- Product A was purchased at $45.00 with a quantity of 10
- CMRR: $950.00
Result of using the As Sold Baseline Method
- Product A line at $50.00 with a quantity of 10
- Product A line at $45.00 with a quantity of 10
- Total Expected Value CMRR: $950.00
Lowest Price
- Product A was purchased at $50.00 with a quantity of 10
- Product A was purchased at $45.00 with a quantity of 10
- CMRR: $950.00
Result of using the Lowest Baseline Method
- Product A line at $45.00 with a quantity of 20
- Total Expected Value: $900.00 CMRR
Uplift Example
- Product A was purchased at $50.00 with a quantity of 10, and uplift at the line level of 10%
- Product A was purchased at $45.00 with a quantity of 10, and uplift at the pricebook entry level of 3%
- CMRR: $950.00
Result of using the Uplift Baseline Method
- Product A line at $55.00 with a quantity of 10
- Product A line at $46.35 with a quantity of 10
- Total Expected Value CMRR: $1013.50