Formula Columns: Assess Growth Potential

Tonkean enables you to sync data from across your business tools so you can see the big picture of your business reality in one dashboard. More importantly, it can create formula data columns combining data from those external sources. This feature provides a deeper layer of insight that amplifies visibility in to your customer journeys and sales pipelines.

This article will show how formula data columns combining several external data sources contributes to a level of understanding that can only be achieved by relating data in this way.
“Vandelay Industries” is a platform that offers paid and free limited access licenses for its services. As customer renewal dates approach, the sales team reviews their accounts and determines what level of service and how many paid licenses to propose. Getting this right is essential to the team’s success in renewing customers.

Vandelay’s “Customers Renewals” List in Tonkean contains one Track for every customer coming up for renewal, and includes Data Columns providing a high-level view across their journey. Data in these columns is synced from multiple external sources:

  • ARR per User (Stripe)
  • Current Deal Amount (Salesforce)
  • Weekly Active Users (Google Analytics)

In Tonkean, the team has the key data they need all in one view. Moreover, they can combine it to understand the relationship of the data and assess growth opportunities. 
This is where Tonkean Formula Data Columns come in.
Vandelay created an Advanced Formula Data Column called “Potential” using data from the three external sources. Active Users, a real-time customer engagement indicator, is multiplied by the ARR/User (according to their current license terms found in Stride) and the result is overall potential revenue.
That total is divided by the current Deal Amount (which indicates how many paid users, and is found in Salesforce) to arrive at percentage which represents growth potential, or churn risk, of every customer. 
The higher the percentage, the greater the opportunity to up-sell. Low or negative percentages show a lack of usage and suggest a flight risk.
This is the formula that was created^:
((({ARR/User}*{Active Users})/{Current Deal Amount})-1)*100

In the Display & Follow-Up Settings window, they applied color settings to highlight positive vs. negative results. And the Number format was set to show as a Percentage.

Since not all Active Users are paid customers, and the Deal Amount is the ARR/User for just each paid customer, the result shows the opportunity for up-selling those free licenses to paid ones - or mitigating against flight.
The Tonkean A.I. Bot also actively monitors this column for changes and automatically alerts account owners when the potential significantly changes to drive immediate action.

Without Tonkean, Vandelay would either (a) not have thought to conduct this analysis, or (b) have spent a lot of time pulling this data manually from their tools and entering it into a spreadsheet. More importantly, even if they had created and managed a spreadsheet for this, there would still be a risk in it being incomplete or inaccurate given the dynamic nature of those relationships.

Vandelay now has a living, dynamic assessment of every customer’s revenue potential. As their details change - plan and/or active user counts - the“Potential” data changes, too, so the team never has to worry about its accuracy. This critical data point now informs how they prioritize renewals and how the package their services to best fit their customers’ needs. And, it’s automatic and in real-time. Huge wins!
Learn to create your own Formula Data Columns in the Knolwedge Base.

^ Tonkean does not convert decimals to percentages (i.e. 0.5 to 50%), so the addition of " -1)*100)" is required at the end of the formula to display the resulting percentage correctly.