How To Calculate Customer Support Margin in Dynamics365 | Arithmix

Calculating customer support margin is an essential aspect of running a successful business. It helps you understand the profitability of your support operations and identify areas where you can improve your efficiency and reduce costs. In this article, we will discuss what customer support margin is, when it's valuable to calculate it, and how you can calculate it.

What Is Customer Support Margin?

Customer support margin is the difference between the revenue generated from your support operations and the cost of providing that support. It's a measure of the profitability of your support operations and helps you understand how much money you're making from providing support to your customers.

The revenue generated from your support operations includes the fees you charge for support services, such as phone support, email support, or live chat support. The cost of providing support includes the salaries of your support staff, the cost of any software or tools used to provide support, and any other expenses related to providing support.

Calculating customer support margin helps you understand the profitability of your support operations and identify areas where you can reduce costs or increase revenue. It's an essential metric for any business that provides support services to its customers.

When Is It Valuable To Calculate Customer Support Margin?

Calculating customer support margin is valuable in several situations. For example, if you're considering expanding your support operations, you'll want to know how profitable your existing support operations are to determine if expanding is financially feasible. Similarly, if you're looking to reduce costs, understanding your customer support margin can help you identify areas where you can cut expenses without impacting the quality of your support.

Calculating customer support margin is also valuable if you're looking to improve the efficiency of your support operations. By understanding the cost of providing support, you can identify areas where you can streamline processes or invest in new tools to improve efficiency and reduce costs.

How To Calculate Customer Support Margin

Calculating customer support margin is relatively straightforward. To calculate it, you need to subtract the cost of providing support from the revenue generated from your support operations. The formula for calculating customer support margin is:

Customer Support Margin = Revenue Generated - Cost of Providing Support

For example, if your support operations generated $10,000 in revenue and cost $5,000 to provide, your customer support margin would be:

Customer Support Margin = $10,000 - $5,000 = $5,000

This means that for every dollar you spend on providing support, you're generating $2 in profit.

It's important to note that customer support margin is not the same as profit margin. Profit margin takes into account all the costs associated with running your business, while customer support margin only considers the costs associated with providing support.

In conclusion, calculating customer support margin is an essential aspect of running a successful business. It helps you understand the profitability of your support operations and identify areas where you can improve your efficiency and reduce costs. By following the formula outlined in this article, you can easily calculate your customer support margin and use it to make informed business decisions.

How Do You Calculate Customer Support Margin in Dynamics365

Dynamics365 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 Dynamics365 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 Dynamics365, 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 Dynamics365 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 Dynamics365 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.