How To Calculate Customer Retention Cost in HubSpot CRM | Arithmix

Customer retention cost is an important metric that businesses need to track in order to understand how much they are spending to keep their existing customers. This metric is calculated by adding up all the costs associated with retaining customers, such as marketing, advertising, customer service, and loyalty programs. By understanding this metric, businesses can make informed decisions about how much they should be spending on customer retention, and whether they need to adjust their strategies to improve retention rates.

What Is Customer Retention Cost?

Customer retention cost is the amount of money that a business spends on retaining its existing customers. This metric includes all the costs associated with keeping customers engaged and loyal, such as marketing campaigns, customer service, and loyalty programs. The goal of calculating customer retention cost is to understand how much a business is spending to keep its customers, and whether that investment is paying off in terms of customer loyalty and repeat business.

Calculating customer retention cost can be a complex process, as it involves tracking a wide range of expenses and activities. However, it is an important metric for businesses to track, as it can help them make informed decisions about how much they should be spending on customer retention, and whether they need to adjust their strategies to improve retention rates.

When Is It Valuable To Calculate Customer Retention Cost?

Calculating customer retention cost is valuable for businesses in a variety of situations. For example, if a business is experiencing high customer churn rates, it may want to calculate its customer retention cost to determine whether it is spending enough on customer retention activities. If the business is not spending enough, it may need to adjust its strategies to improve retention rates and reduce churn.

Similarly, if a business is considering launching a new loyalty program or marketing campaign, it may want to calculate its customer retention cost to determine whether the investment is worth it. By understanding how much it is currently spending on customer retention, the business can make an informed decision about whether the new program or campaign is likely to be cost-effective.

Overall, calculating customer retention cost is an important metric for businesses to track, as it can help them make informed decisions about how much they should be spending on customer retention, and whether they need to adjust their strategies to improve retention rates. By understanding this metric, businesses can improve customer loyalty and drive long-term growth and success.

How Do You Calculate Customer Retention Cost in HubSpot CRM

HubSpot CRM 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 HubSpot CRM and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers you'll powerful yet easy to use. With Arithmix you can import data from systems like HubSpot CRM, 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 HubSpot CRM 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 HubSpot CRM 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.