How To Calculate Customer Success Margin in SAP BusinessByDesign | Arithmix

Calculating customer success margin is a crucial aspect of any business, as it helps you determine the profitability of your customer relationships. It is a metric that measures the difference between the revenue generated by a customer and the cost of acquiring and serving that customer. In other words, it shows you how much profit you are making from each customer relationship.

What Is Customer Success Margin?

Customer success margin is a metric that helps businesses understand the profitability of their customer relationships. It is calculated by subtracting the cost of acquiring and serving a customer from the revenue generated by that customer. The cost of acquiring and serving a customer includes all the expenses associated with marketing, sales, customer service, and support. The revenue generated by a customer includes all the money the customer has paid for your products or services.

The customer success margin is expressed as a percentage, and it helps businesses determine which customers are profitable and which ones are not. By analyzing customer success margins, businesses can identify areas where they need to improve their operations to increase profitability.

When Is It Valuable To Calculate Customer Success Margin?

Calculating customer success margin is valuable in several situations. For example, if you are a business owner, you can use customer success margin to identify which customers are most profitable and focus your efforts on retaining and growing those relationships. You can also use customer success margin to identify areas where you need to improve your operations to increase profitability.

If you are a salesperson, you can use customer success margin to prioritize your sales efforts. By focusing on customers with high success margins, you can increase your chances of closing deals and generating revenue for your company.

If you are a customer service representative, you can use customer success margin to identify which customers require the most attention. By focusing on customers with low success margins, you can improve their experience and increase their loyalty to your company.

Overall, calculating customer success margin is a valuable tool for any business that wants to improve its profitability and customer relationships. By understanding the metrics behind customer success margin, you can make informed decisions that will help you grow your business and increase your bottom line.

How Do You Calculate Customer Success Margin in SAP BusinessByDesign

SAP BusinessByDesign 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 SAP BusinessByDesign 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 SAP BusinessByDesign, 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 SAP BusinessByDesign 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 SAP BusinessByDesign 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.