In RevOps, where sales forecasting accuracy is critical, the most dangerous phrase in the boardroom is: “I think it’s getting better.”
Whether it’s onboarding, expansion, or retention, executive assumptions often drive decisions long before data weighs in. ARR waterfalls offer a way to move from anecdote to fact, especially in organizations where RevOps dashboard automation is needed to streamline decision-making. For RevOps leaders and CROs, they turn revenue analysis into a repeatable, transparent discipline.
Where GTM narratives break down
Go-to-market performance is too often diagnosed through gut feel:
- “Churn is a product problem.”
- “Expansion’s stalling because reps need more enablement.”
- “Onboarding’s faster since we stood up that new team.”
These narratives may feel right. But they lack evidence and misalignment follows.
The ARR waterfall: structure over story
ARR waterfalls segment revenue movement into four categories: New, Expansion, Contraction, and Churn
This breakdown turns ambiguity into clarity. You don’t just know that revenue shifted. You see why, and where.
At one enterprise customer, ARR tracking once lived in spreadsheets. It was manual and error-prone. After adopting structured ARR waterfalls in AccountAim, the team improved accuracy and created a reliable view of gross and net revenue retention.
This level of reporting is a cornerstone of sales forecasting accuracy. With consistent inputs and defined categories, ARR waterfalls allow RevOps to forecast future growth based on what’s actually happened.
What an ARR waterfall actually reveals
With monthly snapshots and segment-level filters, RevOps teams surface meaningful truths:
- New customers that shrink in their first 90 days
- Expansion efforts that produce little actual growth
- Accounts that remain technically “active” while downgrading core products
This level of visibility is essential for planning. Without it, teams can’t validate onboarding outcomes, measure enablement impact, or identify revenue leakage. It also improves RevOps dashboard automation, cutting manual prep and helping teams respond faster.
Aligning teams around one version of reality
The benefit of an ARR waterfall isn’t just insight. It’s alignment:
- Sales and CS work from the same metrics
- Finance sees trusted revenue signals
- Leadership has a current, accurate read on performance
With dashboard automation, these views stay updated. They don’t require special prep or end-of-quarter effort.
Why it matters
In go-to-market planning, clarity drives confidence. an ARR waterfall provides that clarity. They help RevOps leaders translate revenue movement into action, uncover what’s working, and identify what’s at risk.
If you’re still making decisions based on opinions, it’s time to put structure in place. ARR waterfalls won’t just inform your strategy, they will improve it.
Learn more
If you enjoyed this conversation, check out our webinar with Will Sullivan of Predictive Analytics Partners.
