How To Calculate Cost of Acquisition Payback in Dynamics365 | Arithmix

Calculating the cost of acquisition payback is an important step in determining the profitability of a business. It is a metric that helps businesses understand how long it will take to recoup the costs of acquiring a new customer. This calculation is particularly useful for businesses that have high customer acquisition costs, such as those in the software or technology industry.

The cost of acquisition payback is calculated by dividing the total cost of acquiring a new customer by the revenue generated from that customer over a specific period of time. This period of time is typically one year, but it can be adjusted to fit the needs of the business.

What Is Cost of Acquisition Payback?

The cost of acquisition payback is a metric that helps businesses understand the profitability of their customer acquisition efforts. It is a calculation that takes into account the total cost of acquiring a new customer, including marketing and sales expenses, and compares it to the revenue generated from that customer over a specific period of time.

By calculating the cost of acquisition payback, businesses can determine how long it will take to recoup the costs of acquiring a new customer. This information can be used to make informed decisions about marketing and sales strategies, as well as to evaluate the overall profitability of the business.

When Is It Valuable To Calculate Cost of Acquisition Payback?

Calculating the cost of acquisition payback is valuable for businesses that have high customer acquisition costs, such as those in the software or technology industry. These businesses often spend a significant amount of money on marketing and sales efforts to acquire new customers, and it is important to understand the return on investment for these efforts.

Additionally, businesses that are looking to expand their customer base or enter new markets can benefit from calculating the cost of acquisition payback. This information can help businesses make informed decisions about where to allocate resources and which marketing and sales strategies are most effective.

Overall, calculating the cost of acquisition payback is a valuable tool for businesses looking to understand the profitability of their customer acquisition efforts. By taking into account the total cost of acquiring a new customer and comparing it to the revenue generated from that customer over a specific period of time, businesses can make informed decisions about marketing and sales strategies and evaluate the overall profitability of the business.

How Do You Calculate Cost of Acquisition Payback in Dynamics365

Dynamics365 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 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 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 Dynamics365 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 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.