How To Calculate Customer Support Margin in Flexi | Arithmix

Customer support is an essential aspect of any business, and it is crucial to ensure that it is profitable. One way to determine the profitability of customer support is by calculating the customer support margin. The customer support margin is a metric that measures the profitability of customer support activities. In this article, we will discuss what customer support margin is and when it is valuable to calculate it.

What Is Customer Support Margin?

Customer support margin is the difference between the revenue generated from customer support activities and the cost of providing those services. It is a measure of the profitability of customer support activities. The revenue generated from customer support activities includes revenue from maintenance contracts, service fees, and other support-related charges. The cost of providing customer support includes salaries, benefits, training, and other expenses related to providing support services.

Calculating customer support margin helps businesses to understand the profitability of their customer support activities. It also helps businesses to identify areas where they can improve efficiency and reduce costs. By analyzing customer support margin, businesses can make informed decisions about pricing, staffing, and resource allocation.

When Is It Valuable To Calculate Customer Support Margin?

Calculating customer support margin is valuable in several situations. Firstly, it is valuable when a business wants to understand the profitability of its customer support activities. By calculating customer support margin, businesses can determine whether their customer support activities are profitable or not. If the customer support margin is negative, it may be an indication that the business needs to re-evaluate its pricing or reduce costs.

Secondly, calculating customer support margin is valuable when a business wants to identify areas where it can improve efficiency and reduce costs. By analyzing customer support margin, businesses can identify areas where they are spending too much money and find ways to reduce costs. For example, if the cost of providing customer support is high, a business may consider outsourcing some of its support activities to a third-party provider.

Lastly, calculating customer support margin is valuable when a business wants to make informed decisions about pricing, staffing, and resource allocation. By understanding the profitability of customer support activities, businesses can make informed decisions about pricing their support services. They can also determine how many support staff they need and allocate resources accordingly.

In conclusion, calculating customer support margin is a valuable metric that helps businesses to understand the profitability of their customer support activities. It is useful in identifying areas where businesses can improve efficiency and reduce costs. By analyzing customer support margin, businesses can make informed decisions about pricing, staffing, and resource allocation.

How Do You Calculate Customer Support Margin in Flexi

Flexi 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 Flexi 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 Flexi, 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 Flexi 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 Flexi 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.