# How To Calculate Cost of Acquisition Ratio in NetSuite CRM | Arithmix

Learn how to calculate the cost of acquisition ratio in NetSuite CRM with our step-by-step guide. Discover the key metrics you need to track and optimize to improve your customer acquisition strategy and drive business growth.

Calculating the cost of acquisition ratio is a crucial step in determining the success of your business. This ratio helps you understand the amount of money you spend on acquiring new customers compared to the revenue generated from those customers. By calculating this ratio, you can identify areas where you need to improve your marketing and sales strategies to increase revenue and reduce costs.

## What Is Cost of Acquisition Ratio?

The cost of acquisition ratio is a metric that measures the amount of money you spend on acquiring new customers compared to the revenue generated from those customers. This ratio takes into account all the costs associated with acquiring new customers, such as marketing and sales expenses, and compares them to the revenue generated from those customers over a specific period of time.

For example, if you spend \$10,000 on marketing and sales efforts to acquire 100 new customers, and those customers generate \$50,000 in revenue over the next year, your cost of acquisition ratio would be 20% (\$10,000 / \$50,000).

## When Is It Valuable To Calculate Cost of Acquisition Ratio?

Calculating the cost of acquisition ratio is valuable for businesses of all sizes and industries. This ratio can help you identify areas where you need to improve your marketing and sales strategies to reduce costs and increase revenue. It can also help you determine the return on investment (ROI) for your marketing and sales efforts.

For example, if you find that your cost of acquisition ratio is higher than your competitors, you may need to reevaluate your marketing and sales strategies to reduce costs and increase revenue. Alternatively, if you find that your cost of acquisition ratio is lower than your competitors, you may be able to invest more in marketing and sales efforts to acquire more customers and increase revenue.

Overall, calculating the cost of acquisition ratio is an essential step in understanding the success of your business and identifying areas for improvement. By regularly monitoring this ratio, you can make data-driven decisions to improve your marketing and sales strategies and increase revenue.

## How Do You Calculate Cost of Acquisition Ratio in NetSuite CRM

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

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.