How To Calculate CAC in Dynamics365 | Arithmix

Calculating CAC (Customer Acquisition Cost) is an important metric for any business, as it helps to determine the cost of acquiring a new customer. In this article, we will discuss what CAC is, when it is valuable to calculate CAC, and how to calculate CAC in Dynamics365.

What Is CAC?

CAC is the cost of acquiring a new customer. This includes all the expenses associated with marketing, sales, and other activities that are required to bring in a new customer. CAC is important because it helps businesses to understand how much they are spending to acquire new customers, and whether or not that cost is sustainable in the long run.

For example, if a business spends $1000 on marketing and sales activities in a month, and acquires 10 new customers, then the CAC for that month would be $100. This means that the business is spending $100 to acquire each new customer.

When Is It Valuable To Calculate CAC?

It is valuable to calculate CAC when a business is looking to understand the cost of acquiring new customers, and whether or not that cost is sustainable in the long run. This can help businesses to make informed decisions about their marketing and sales strategies, and to identify areas where they can reduce costs and improve efficiency.

For example, if a business is spending a lot of money on marketing and sales activities, but is not seeing a significant increase in the number of new customers, then it may be time to re-evaluate their strategy and look for ways to reduce costs and improve efficiency.

How to Calculate CAC in Dynamics365

Calculating CAC in Dynamics365 is a straightforward process. Here are the steps:

1. Identify the total cost of marketing and sales activities for a given period (e.g. a month).
2. Identify the number of new customers acquired during that period.
3. Divide the total cost by the number of new customers to get the CAC.

For example, if a business spent $1000 on marketing and sales activities in a month, and acquired 10 new customers, then the CAC would be $100.

It is important to note that CAC can vary depending on the industry, the target market, and other factors. Therefore, it is important to regularly monitor and analyze CAC to ensure that it remains sustainable in the long run.

In conclusion, calculating CAC is an important metric for any business that is looking to understand the cost of acquiring new customers. By following the steps outlined in this article, businesses can easily calculate CAC in Dynamics365 and use that information to make informed decisions about their marketing and sales strategies.

How Do You Calculate CAC in Dynamics365

Dynamics365 itself isn’t naturally geared towards letting you calculate complex metrics like CAC. As an alternative, teams typically use products like Arithmix to import data from Dynamics365 and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Dynamics365, combine it with data from other systems, and create calculations like CAC.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating CAC in Arithmix

Calculating metrics like CAC is simple in Arithmix. Once you've created your free account, you’ll be able to import your Dynamics365 data, and use it to create natural language formulas for metrics like CAC.

Arithmix is designed to give you the power to build any calculations you want on top of your Dynamics365 data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.