# How To Calculate Customer Success Margin in Ultipro | Arithmix

Learn how to calculate customer success margin in Ultipro with our comprehensive guide. Discover the key metrics and strategies to measure and improve your customer success, and drive growth for your business.

Customer success margin is a crucial metric for any business that wants to measure the effectiveness of its customer success efforts. It helps you understand how much value you are delivering to your customers and how much it costs you to do so. In this article, we will discuss what customer success margin is, when it is valuable to calculate it, and how 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 delivering your product or service to that customer. It is a measure of the profitability of your customer success efforts. The higher the customer success margin, the more profitable your business is.

Calculating customer success margin requires you to have a clear understanding of your revenue streams and the costs associated with delivering your product or service. You need to be able to allocate costs to specific customers and revenue streams to calculate customer success margin accurately.

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

Calculating customer success margin is valuable in several situations:

• When you want to measure the effectiveness of your customer success efforts
• When you want to identify which customers are most profitable
• When you want to optimize your customer success efforts to increase profitability

By calculating customer success margin, you can identify which customers are generating the most revenue and which ones are costing you the most to serve. This information can help you make informed decisions about how to allocate your resources and optimize your customer success efforts.

## How To Calculate Customer Success Margin

To calculate customer success margin, you need to follow these steps:

1. Identify your revenue streams
2. Allocate costs to specific customers and revenue streams
3. Calculate the revenue generated by each customer
4. Calculate the cost of delivering your product or service to each customer
5. Subtract the cost of delivering your product or service from the revenue generated by each customer
6. Divide the result by the revenue generated by each customer
7. Multiply the result by 100 to get the customer success margin as a percentage

For example, if a customer generates \$100,000 in revenue and it costs you \$70,000 to deliver your product or service to that customer, the customer success margin would be 30%.

Calculating customer success margin can be a complex process, but it is a valuable metric for any business that wants to measure the effectiveness of its customer success efforts. By understanding what customer success margin is, when it is valuable to calculate it, and how to calculate it, you can make informed decisions about how to optimize your customer success efforts and increase profitability.

## How Do You Calculate Customer Success Margin in Ultipro

Ultipro 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 Ultipro 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 Ultipro, 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 Ultipro 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 Ultipro 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.