Revenue driver tree
This driver tree breaks subscription revenue into two practical levers: the size of the customer base and the revenue earned from each customer. The customer-base branch points to acquisition, churn, and expansion. The revenue-per-customer branch points to price, packaging, and mix. That structure helps a team discuss revenue without treating it as one unexplained number. Add a formula and current value to each leaf when the tree becomes a planning model. For example, active customers may be prior customers plus new customers minus churned customers. Use consistent definitions so finance, sales, and product teams are analysing the same drivers. It gives readers a concise reference they can reuse when discussing the result with colleagues.
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Scenario
Revenue planning
Key decisions
- Customer base: Separate acquisition, churn, and expansion effects.
- Revenue per customer: Separate price and product-mix effects.
- Measures: Attach an owner and metric to each leaf.
When to reuse this
Use for a SaaS revenue plan or a monthly operating review.
Frequently asked questions
What is a driver tree?
Why split revenue this way?
Can I add formulas?
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