Participants
To qualify as a competition participant, a partner must:
- Have joined the HubSpot Solutions Partner Program before January 1, 2024.
- Still be active and in good standings with the program at the time that final awards are evaluated and have no pending escalations on channel clients.
- Have a tier of gold or higher at the time the awards are evaluated.
- Have at least five reviews that were posted in 2023 published on the directory at the time that the final awards are evaluated.
- Have at least $20k Managed MRR throughout all of 2023.
- Have at least 90% Customer Dollar Retention for 2023 overall.
Criteria
Once qualified, partners are ranked against one another using revenue retention metrics evaluated at the partner level. The partner from each region with the highest 2023 revenue retention of all of their sold and managed clients wins. Ties will be broken with the following criteria, in order:
- The partner with the largest number of customers (including both managed and sold) wins.
- The partner with the highest 2023 sold MRR (calculated in the same manner as the Partner of the Year award) wins.
Revenue Retention
Revenue Retention is a measure of how cross-sell, upgrades, downgrades, and cancellations compare to your install base of sold and managed clients, specifically, an annualized calculation of monthly net MRR changes for customers. Each month, we look at the client subscriptions at the start of the month, and then compare these to cross-sell, upgrades, downgrades, and cancellations within the month. That gives us a percent change for the month. We then “annualize” this percentage (multiply it by itself 12 times) to calculate Revenue Retention, which says “if this same pattern continued for the next year, how would revenue at the end of the year compare to revenue at the beginning of the year?” The formula for Revenue Retention is (End-of-Month MRR/Beginning-of-Month MRR)^12, where the End-of-Month MRR doesn’t include any new clients from the month.
So, for example, if your install base dollars are 1% higher at the end of the month than the beginning, then your retention for that month is 101%. The annualized Revenue Retention would be (101%)12 = 113%. Likewise, if your install base dollars are 1% lower at the end of the month than the beginning, then your retention for that month is 99%. The annualized Revenue Retention would be (99%)12 = 89%
How can I improve my install base revenue retention?
First and foremost, work with your Channel Consultant -- they’re customer satisfaction experts and can help you find specific levers in your install base for improving your Revenue Retention.
Generally, the activities that improve Revenue Retention are:
- Cross-Sell new product lines
- Up-sell on existing product lines
- Minimize downgrades
- Minimize churn
Does selling new business help my revenue retention?
Not directly. Selling new business makes your Revenue Retention more stable -- that is, less likely to move up and down. This can mean that a cancellation will have less impact on your Revenue Retention number, but it also means that you’ll need to keep up cross-sell and upsell efforts across new clients to keep the Revenue Retention number up.
Customer Dollar Retention
Customer Dollar Retention is specifically a measure of churn, and ignores upgrades/downgrades. Like Revenue Retention, Customer Dollar Retention is annualized. The formula is (Beginning-of-Month MRR less churns/Beginning-of-Month MRR)^12. Any complete cancellation of a product hub, even if the customer keeps other product hubs, counts towards the churns total.
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