# How To Calculate Customer Success Margin in Nimble | Arithmix

Learn how to calculate the customer success margin in Nimble with our step-by-step guide. Improve your business's customer retention and satisfaction by understanding this important metric.

Customer success is a crucial aspect of any business. It is the key to retaining customers and building a loyal customer base. Customer success margin is a metric that helps businesses measure the effectiveness of their customer success efforts. 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 a metric that measures the profitability of a customer over their lifetime. It takes into account the revenue generated by the customer and the cost of acquiring and serving the customer. The customer success margin is calculated by subtracting the cost of acquiring and serving the customer from the revenue generated by the customer.

For example, if a customer generates \$10,000 in revenue and it costs \$2,000 to acquire and serve the customer, the customer success margin would be \$8,000. This means that the customer is profitable and contributes positively to the business's bottom line.

## When Is It Valuable To Calculate Customer Success Margin?

Calculating customer success margin is valuable for businesses in several situations. Firstly, it helps businesses identify their most profitable customers. By analyzing the customer success margin for each customer, businesses can identify which customers are generating the most revenue and contributing the most to the bottom line.

Secondly, calculating customer success margin helps businesses identify areas where they can improve their customer success efforts. If the customer success margin is low for a particular customer or segment of customers, it may indicate that the business needs to improve its customer success efforts to retain those customers and increase their profitability.

Finally, calculating customer success margin helps businesses make informed decisions about customer acquisition and retention. By understanding the cost of acquiring and serving a customer and the revenue generated by that customer, businesses can make informed decisions about how much to invest in customer acquisition and retention efforts.

In conclusion, customer success margin is a valuable metric for businesses to measure the effectiveness of their customer success efforts. By analyzing the customer success margin for each customer, businesses can identify their most profitable customers, areas for improvement, and make informed decisions about customer acquisition and retention.

## How Do You Calculate Customer Success Margin in Nimble

Nimble 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 Nimble 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 Nimble, 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.