How To Calculate Customer Success Margin in SYSPRO | Arithmix

Calculating customer success margin is an important aspect of any business. It helps you determine how much profit you are making from each customer and how much you are spending to keep them satisfied. 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 amount of profit you make from a customer after deducting the cost of acquiring and retaining them. It is a metric that helps you understand the profitability of your customer base. The higher the customer success margin, the more profitable your business is.

To calculate customer success margin, you need to know the revenue generated by the customer and the cost of acquiring and retaining them. The cost of acquiring a customer includes marketing and sales expenses, while the cost of retaining a customer includes customer support and account management expenses.

Once you have these numbers, you can subtract the cost of acquiring and retaining the customer from the revenue generated by them to get the customer success margin.

When Is It Valuable To Calculate Customer Success Margin?

Calculating customer success margin is valuable in several situations. For example, if you are trying to determine the profitability of a particular customer segment, you can use customer success margin to compare the profitability of different segments.

Customer success margin is also useful when you are trying to optimize your marketing and sales efforts. By calculating the customer success margin for different marketing and sales channels, you can determine which channels are the most profitable and focus your efforts on those channels.

Finally, customer success margin is valuable when you are trying to improve customer retention. By calculating the cost of retaining a customer, you can identify areas where you can reduce costs and improve customer satisfaction.

In conclusion, customer success margin is an important metric that helps you understand the profitability of your customer base. By calculating customer success margin, you can identify areas where you can improve profitability and focus your efforts on the most profitable customers and channels.

How Do You Calculate Customer Success Margin in SYSPRO

SYSPRO 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 SYSPRO 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 SYSPRO, 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 SYSPRO 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 SYSPRO 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.