A Guide to Forecasting Recurring Revenue

One of the more complicated, but least discussed topics we encounter on a weekly basis is the topic of forecasting renewals for recurring revenue. Practitioners of renewal organizations, CS organizations, and sales organizations responsible for renewing subscriptions find the process of forecasting recurring revenue to be difficult and a mystery in many cases. The variables that go into a forecast can be daunting.

In this document we will discuss common definitions, concepts, and models for renewal forecasting. This document steps away from classic TSIA benchmark data and leans on 30 years of practical experience from the author and TSIA members.