How To Calculate Customer Retention Cost in Apptivo | Arithmix

Customer retention cost is an important metric that businesses need to track in order to understand the cost of retaining their existing customers. It is the amount of money that a business spends on retaining its customers over a given period of time. This includes all the costs associated with customer retention, such as marketing, customer service, loyalty programs, and other initiatives aimed at keeping customers engaged and loyal to the brand.

What Is Customer Retention Cost?

Customer retention cost is a key metric that helps businesses understand the cost of retaining their existing customers. It is calculated by adding up all the costs associated with customer retention, including marketing, customer service, loyalty programs, and other initiatives aimed at keeping customers engaged and loyal to the brand. By tracking customer retention cost, businesses can identify areas where they can reduce costs and improve their retention strategies.

Customer retention cost is an important metric because it helps businesses understand the value of their existing customers. Retaining existing customers is often more cost-effective than acquiring new ones, as it can be up to five times more expensive to acquire a new customer than to retain an existing one. By understanding the cost of retaining customers, businesses can make informed decisions about how to allocate their resources and improve their customer retention strategies.

When Is It Valuable To Calculate Customer Retention Cost?

Calculating customer retention cost is valuable for businesses of all sizes and industries. It is particularly important for businesses that rely heavily on repeat customers, such as subscription-based services, e-commerce businesses, and businesses with high customer lifetime value.

Calculating customer retention cost is also valuable for businesses that are looking to improve their retention strategies. By understanding the cost of retaining customers, businesses can identify areas where they can reduce costs and improve their retention initiatives. This can help businesses increase customer loyalty, reduce churn, and ultimately improve their bottom line.

Overall, calculating customer retention cost is an important metric that businesses should track in order to understand the value of their existing customers and improve their retention strategies. By tracking this metric, businesses can make informed decisions about how to allocate their resources and improve their customer retention initiatives.

How Do You Calculate Customer Retention Cost in Apptivo

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

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 Customer Retention Cost in Arithmix

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

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