How To Calculate Customer Support Margin in Deltek Ajera | Arithmix

Calculating customer support margin is an essential aspect of running a successful business. It helps you determine the profitability of your customer support operations and identify areas where you can improve your processes. In this article, we'll discuss what customer support margin is, when it's valuable to calculate it, and how you can calculate it using Deltek Ajera.

What Is Customer Support Margin?

Customer support margin is the difference between the revenue generated by your customer support operations and the cost of providing those services. This metric is crucial because it helps you understand the profitability of your customer support operations and identify areas where you can reduce costs or increase revenue.

Calculating customer support margin involves taking into account all the costs associated with providing customer support, such as salaries, benefits, training, software, and hardware. You also need to factor in the revenue generated by your customer support operations, such as customer renewals, upsells, and cross-sells.

When Is It Valuable To Calculate Customer Support Margin?

Calculating customer support margin is valuable in several scenarios. For example, if you're looking to improve your customer support operations, you need to understand the profitability of your current processes. By calculating customer support margin, you can identify areas where you're spending too much money or not generating enough revenue.

Customer support margin is also valuable when you're considering outsourcing your customer support operations. By calculating the margin, you can determine whether outsourcing would be more cost-effective than providing support in-house.

How to Calculate Customer Support Margin

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

1. Identify all the costs associated with providing customer support, such as salaries, benefits, training, software, and hardware.
2. Calculate the total cost of providing customer support by adding up all the costs identified in step 1.
3. Identify all the revenue generated by your customer support operations, such as customer renewals, upsells, and cross-sells.
4. Calculate the total revenue generated by your customer support operations.
5. Subtract the total cost of providing customer support from the total revenue generated by your customer support operations.
6. The result is your customer support margin.

By following these steps, you can calculate your customer support margin and use it to make informed decisions about your customer support operations.

How Do You Calculate Customer Support Margin in Deltek Ajera

Deltek Ajera itself isn’t naturally geared towards letting you calculate complex metrics like Customer Support Margin. As an alternative, teams typically use products like Arithmix to import data from Deltek Ajera 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 Deltek Ajera, combine it with data from other systems, and create calculations like Customer Support 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 Support Margin in Arithmix

Calculating metrics like Customer Support Margin is simple in Arithmix. Once you've created your free account, you’ll be able to import your Deltek Ajera data, and use it to create natural language formulas for metrics like Customer Support Margin.

Arithmix is designed to give you the power to build any calculations you want on top of your Deltek Ajera 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.