How To Calculate Cost of Acquisition Payback in Freshsales | Arithmix

Calculating the cost of acquisition payback is an essential step in determining the profitability of your business. It is a metric that helps you understand how long it will take for your business to recoup the costs of acquiring a new customer. This metric is especially important for businesses that have high customer acquisition costs, such as those in the software 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. This period is usually one year, but it can be longer or shorter depending on your business model.

What Is Cost of Acquisition Payback?

The cost of acquisition payback is a metric that helps businesses determine the profitability of their customer acquisition efforts. It is a measure of how long it will take for a business to recoup the costs of acquiring a new customer. This metric is important because it helps businesses understand the return on investment (ROI) of their customer acquisition efforts.

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. This period is usually one year, but it can be longer or shorter depending on your business model.

When Is It Valuable To Calculate Cost of Acquisition Payback?

The cost of acquisition payback is valuable for businesses that have high customer acquisition costs. This is especially true for businesses in the software industry, where the cost of acquiring a new customer can be significant.

Calculating the cost of acquisition payback can help businesses determine the ROI of their customer acquisition efforts. It can also help businesses identify areas where they can reduce costs and improve their profitability.

Overall, the cost of acquisition payback is an important metric for businesses that want to understand the profitability of their customer acquisition efforts. By calculating this metric, businesses can make informed decisions about their marketing and sales strategies, and ultimately improve their bottom line.

How Do You Calculate Cost of Acquisition Payback in Freshsales

Freshsales 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 Freshsales 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 Freshsales, 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 Freshsales 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 Freshsales 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.