How To Calculate Customer Success Margin in Hubspot Service Hub | Arithmix

Calculating customer success margin is an important aspect of any business. It helps you understand how much value you are getting from your customers and how much you are spending to keep them happy. In this article, we will discuss what customer success margin is and when it is valuable to calculate it.

What Is Customer Success Margin?

Customer success margin is the difference between the revenue generated by a customer and the cost of servicing that customer. It is a metric that helps you understand the profitability of your customer base. By calculating customer success margin, you can identify which customers are the most profitable and which ones are costing you money.

For example, let's say you have a customer who generates $10,000 in revenue per year. However, it costs you $5,000 to service that customer. Your customer success margin for that customer would be $5,000 ($10,000 - $5,000). This means that you are making a profit of $5,000 from that customer.

Calculating customer success margin is important because it helps you identify which customers are worth investing in and which ones are not. If you have a customer who is costing you more money than they are generating in revenue, it may be time to reevaluate your relationship with that customer.

When Is It Valuable To Calculate Customer Success Margin?

Calculating customer success margin is valuable in a variety of situations. Here are a few examples:

1. When Evaluating Customer Acquisition Strategies

When you are trying to acquire new customers, it is important to understand the potential profitability of those customers. By calculating customer success margin, you can identify which acquisition strategies are the most effective at bringing in profitable customers.

2. When Identifying Cross-Selling and Upselling Opportunities

When you are looking to increase revenue from your existing customer base, it is important to identify cross-selling and upselling opportunities. By calculating customer success margin, you can identify which customers are the most profitable and which ones are most likely to purchase additional products or services.

3. When Evaluating Customer Retention Strategies

When you are trying to retain customers, it is important to understand the potential profitability of those customers. By calculating customer success margin, you can identify which retention strategies are the most effective at keeping profitable customers.

Overall, calculating customer success margin is an important metric for any business. It helps you understand the profitability of your customer base and identify which customers are worth investing in. By using this metric, you can make informed decisions about customer acquisition, retention, and upselling strategies.

How Do You Calculate Customer Success Margin in Hubspot Service Hub

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

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 Success Margin in Arithmix

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

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