How To Calculate Customer Retention Cost in Deltek | Arithmix
Learn how to calculate customer retention cost in Deltek with our comprehensive guide. Discover the key metrics and strategies to help you measure and improve your customer retention rates, and maximize the lifetime value of your customers.
Customer retention cost is an important metric for any business looking to maintain a loyal customer base. It is the cost associated with retaining existing customers, and it can be calculated in a variety of ways. In this article, we will explore what customer retention cost is, when it is valuable to calculate it, and how to calculate it in Deltek.
What Is Customer Retention Cost?
Customer retention cost is the amount of money a business spends to keep its existing customers. This includes the cost of marketing and advertising campaigns, loyalty programs, customer service, and other efforts aimed at retaining customers. The goal of calculating customer retention cost is to determine the effectiveness of these efforts and to identify areas where improvements can be made.
Calculating customer retention cost can also help businesses determine the lifetime value of a customer. By understanding how much it costs to retain a customer, businesses can determine how much revenue that customer is likely to generate over their lifetime. This information can then be used to make strategic decisions about marketing and customer service efforts.
When Is It Valuable To Calculate Customer Retention Cost?
Calculating customer retention cost is valuable for any business that wants to maintain a loyal customer base. It is particularly important for businesses that rely heavily on repeat customers, such as subscription-based services or retailers. By understanding the cost of retaining customers, businesses can make informed decisions about where to allocate their resources.
Calculating customer retention cost is also valuable for businesses that are looking to improve their customer service. By identifying areas where customer retention cost is high, businesses can focus on improving those areas to reduce the cost of retaining customers. This can lead to increased customer satisfaction and loyalty, which can ultimately lead to increased revenue.
How To Calculate Customer Retention Cost in Deltek
Calculating customer retention cost in Deltek is a straightforward process. First, you will need to gather data on the cost of your marketing and advertising campaigns, loyalty programs, and customer service efforts. This data can be found in your accounting software or by consulting with your marketing and customer service teams.
Next, you will need to determine the number of customers you have retained over a specific period of time. This can be done by comparing your customer base at the beginning and end of the period and subtracting any new customers you have acquired during that time.
Once you have this data, you can calculate your customer retention cost by dividing the total cost of retaining customers by the number of customers retained. For example, if you spent $10,000 on customer retention efforts and retained 1,000 customers, your customer retention cost would be $10 per customer.
By regularly calculating customer retention cost in Deltek, you can track the effectiveness of your customer retention efforts and make informed decisions about where to allocate your resources. This can help you maintain a loyal customer base and increase revenue over time.
How Do You Calculate Customer Retention Cost in Deltek
Deltek 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 Deltek 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, 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 Deltek 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 Deltek 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.Use Arithmix free