# How To Calculate Customer Success Margin in Wave Accounting | Arithmix

Learn how to calculate your customer success margin in Wave Accounting with our step-by-step guide. Increase your profitability and ensure the success of your business with this essential financial metric.

As a business owner, you're always looking for ways to measure the success of your company. One metric that can help you do this is the customer success margin. This metric measures the profitability of your customers over time. By calculating the customer success margin, you can determine which customers are the most profitable and which ones are not worth your time and resources.

## What Is Customer Success Margin?

Customer success margin is a metric that measures the profitability of your customers over time. It takes into account the revenue generated by a customer and the cost of acquiring and retaining that customer. The customer success margin is calculated by subtracting the cost of acquiring and retaining a customer from the revenue generated by that customer. The result is the profit margin for that customer.

For example, if a customer generates \$10,000 in revenue and it costs \$2,000 to acquire and retain that customer, the customer success margin would be \$8,000. This means that the customer is generating a profit of \$8,000 for your business.

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

Calculating customer success margin is valuable for any business that wants to measure the profitability of its customers. This metric can help you identify which customers are the most profitable and which ones are not worth your time and resources. By focusing on the most profitable customers, you can increase your revenue and profitability.

Customer success margin is also valuable for businesses that want to improve their customer acquisition and retention strategies. By understanding the cost of acquiring and retaining customers, you can identify areas where you can reduce costs and improve your processes. This can help you acquire and retain customers more efficiently, which can increase your profitability over time.

In conclusion, calculating customer success margin is a valuable metric for any business that wants to measure the profitability of its customers. By understanding the revenue generated by a customer and the cost of acquiring and retaining that customer, you can identify which customers are the most profitable and which ones are not worth your time and resources. This can help you focus on the most profitable customers and improve your customer acquisition and retention strategies over time.

## How Do You Calculate Customer Success Margin in Wave Accounting

Wave Accounting 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 Wave Accounting 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 Wave Accounting, 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.