We're a few weeks into the New Year, but it isn't too late for some resolutions. 2015 is the year of revenue reporting.
You may be thinking, why would I care about revenue reporting? My team is measured based on the number of leads we generate, not the amount of revenue the company generates. However, understanding of the amount of revenue your marketing efforts generate towards your bottom line is priceless. The number of leads your team produces is great, but if that doesn't translate to revenue for your business, your efforts aren't paying off. So how do you decide where to invest your marketing team's time? How do you decide who you need to hire on your team? How do you decide how much money you should invest in different marketing channels? Two words: Revenue reporting.
Revenue reporting will allow you to understand whether or not you are generating leads that impact the company's bottom line. After all, if you are generating hundreds or thousands of leads, but the majority of them don't close, something needs to change.
Here is how you can do revenue reporting in HubSpot. Please note that revenue reporting is an Enterprise feature.
How to Get Started with Revenue Reporting
Before you do anything, it is important to make sure you have everything set up properly. Here are the scenarios you might encounter when starting to do revenue reporting:
Option 1: If you are using HubSpot CRM, your revenue reporting will work without any custom set-up.
Option 3: If you are using Zoho, you can work with Bedrock Data and use their integration for $99/month.
Option 4: If you are using another CRM, you can use the Deals API available from HubSpot. You will need to work with a third-party developer to set this up.
If you are a visual learner like me, here is a flow chart to help you work through the options.
Glossary of Revenue Terms
Before we get started building out the revenue reporting, let's review some of the important terms. These will be available to you as you build out your Revenue Report.
- Total Revenue - the total amount of revenue generated by companies in your database.
- First Deal Created Date - the first time an opportunity was created. (Note: This would most likely be created the first time a sales rep sees a company as a potential deal)
- Recent Deal Close Date - the most recent time a deal closed.
- Recent Deal Amount - the most recent amount a deal paid. If you have customers who pay more than once (renewals or upgrades), there would be a new date every time they renewed or upgrades. This field will take the most recent deal amount.
- Associated Deals - the number of deals associated with the company or contact.
Run a Revenue Report
The wait is over! Let's start running a revenue report.
Go to your Reports Home, and select Create a new report.
You have two options to run a revenue report. You can run a Contacts Report or a Companies Report. I would recommend that if you are a B2C company, you run a Contacts Report, and if you are a B2B company, you run a Companies Report. Note: Revenue Reports are not a separate report. They are part of Contacts and Companies Reports.
In this case, we'll choose a Companies Report. You will see an option to build your report from scratch or you can choose one of the pre-built reports. You know you will get a revenue report from the pre-built reports because of the dollar signs next to them in green below. For our purposes, select Start From Scratch.
You will now come to the screen where you can create a Companies Report.
First, select any list for your report. You can choose a specific list or create the report based off of all your contacts.
Next, choose a conversion type. Because we want to pull in revenue, you should use one of the two options in the glossary above: Recent Deal Close Date or First Deal Created Date. This will be the x axis of your graph. After you select your option from the drop-down menu, you will notice that the x axis on the graph above will reflect the option you choose.
Next, select your time period. You can choose all time, this week, this month to date, this month, previous month, this year to date, a custom date range or a rolling date range.
Then you need to select whether you want to group by week or month. In this case, let's choose month. You can see again at the graph at the top that it will show your example data broken down by month.
Next, you can choose any companies property to break your report down by. Some examples include but are not limited to Original Source Type, Industry, and IP Location.
The next drop-down menu is where the revenue numbers come in. Choose from the options in the glossary above for your revenue report: Total Revenue, Recent Deal Amount, or Associated Deals. Then, create your report.
Your final report is shown below. In the graph you have an overview of how much revenue you made each month and the source it originated from. In the chart below, you have more details about how many companies that source generated as well as the amount of revenue associated with each source.
Here is what the report would look like if we ran it as a Contacts Report. As you can see, it is similar except for the Contacts column which shows the number of Contacts associated with each source instead of the number of Companies.
Use Recipes to Report on Revenue
Another option you have to run a revenue report is to use HubSpot's Recipes. Recipes are groups of pre-built reports designed to help you achieve a goal. In this case, your goal is to report on revenue.
To access the recipes, go to Reports Home, and click on Recipes on the right-hand side.
Under the Reports Recipes, you will see an option for revenue reports. You can use the toggle to choose either Companies Revenue Reports or Contacts Revenue Reports. Then select Add this recipe.
Your reports will appear in your Reports Home. When they are done running, there will be a green circle next to the report.
What do you think of revenue reports? What kinds of revenue reports will you be pulling this year? Let us know in the comments!
Originally published Jan 23, 2015 12:00:00 PM, updated September 20 2017