How To Calculate Cost of Acquisition Payback in Deltek Costpoint | Arithmix

Calculating the cost of acquisition payback is a crucial step in determining the profitability of a business. It helps you understand how long it will take for the investment you made in acquiring a new customer to pay off. This metric is particularly important for businesses that rely on recurring revenue streams, such as subscription-based services or software-as-a-service (SaaS) companies.

The cost of acquisition payback is calculated by dividing the total cost of acquiring a customer by the revenue generated from that customer. The result is the number of months it will take for the revenue generated from that customer to cover the cost of acquiring them. This metric can help you make informed decisions about your marketing and sales strategies, as well as your pricing and customer retention efforts.

What Is Cost of Acquisition Payback?

The cost of acquisition payback is a financial metric that helps businesses determine the profitability of acquiring new customers. It takes into account the total cost of acquiring a customer, including marketing and sales expenses, and compares it to the revenue generated from that customer over a certain period of time. This metric is particularly useful for businesses that rely on recurring revenue streams, as it helps them understand how long it will take for the investment in acquiring a new customer to pay off.

Calculating the cost of acquisition payback can also help businesses identify areas where they can improve their marketing and sales strategies. For example, if the cost of acquiring a customer is high compared to the revenue generated from that customer, it may be time to reevaluate your marketing and sales tactics to find more cost-effective ways to acquire new customers.

When Is It Valuable To Calculate Cost of Acquisition Payback?

Calculating the cost of acquisition payback is valuable for any business that relies on recurring revenue streams. This includes subscription-based services, SaaS companies, and any other business that generates revenue from ongoing customer relationships.

It is particularly valuable for businesses that are looking to grow their customer base and increase their revenue. By understanding the cost of acquiring a new customer and how long it will take for that investment to pay off, businesses can make informed decisions about their marketing and sales strategies, as well as their pricing and customer retention efforts.

Ultimately, calculating the cost of acquisition payback is a valuable tool for any business that wants to make data-driven decisions about their growth and profitability. By understanding this metric and using it to inform your business strategies, you can set yourself up for long-term success and sustainable growth.

How Do You Calculate Cost of Acquisition Payback in Deltek Costpoint

Deltek Costpoint itself isn’t naturally geared towards letting you calculate complex metrics like Cost of Acquisition Payback. As an alternative, teams typically use products like Arithmix to import data from Deltek Costpoint 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 Deltek Costpoint, combine it with data from other systems, and create calculations like Cost of Acquisition Payback.

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 Cost of Acquisition Payback in Arithmix

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

Arithmix is designed to give you the power to build any calculations you want on top of your Deltek Costpoint 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.