How To Calculate Customer Support Margin in Sage 300 | Arithmix

Calculating customer support margin is an essential part of running a successful business. It helps you determine the profitability of your customer support services and identify areas for improvement. In this article, we will discuss what customer support margin is, when it is valuable to calculate it, and how to calculate it.

What Is Customer Support Margin?

Customer support margin is the difference between the revenue generated from customer support services and the cost of providing those services. It is a measure of the profitability of your customer support operations. To calculate customer support margin, you need to know the total revenue generated from customer support services and the total cost of providing those services.

The revenue generated from customer support services includes the fees charged for support services, such as phone support, email support, and live chat support. The cost of providing those services includes the salaries and benefits of support staff, the cost of training and development, and the cost of any tools or software used to provide support services.

When Is It Valuable To Calculate Customer Support Margin?

Calculating customer support margin is valuable in several situations. First, it helps you identify the profitability of your customer support services. If your customer support margin is low or negative, it may be an indication that you need to adjust your pricing or reduce your costs.

Second, calculating customer support margin can help you identify areas for improvement in your customer support operations. For example, if your customer support margin is low because of high support staff salaries, you may need to consider hiring less experienced staff or outsourcing some support services.

Finally, calculating customer support margin can help you make informed decisions about investing in new customer support services or technologies. By understanding the profitability of your current customer support services, you can determine whether it makes sense to invest in new services or technologies that may increase your customer support margin.

How To Calculate Customer Support Margin

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

1. Determine the total revenue generated from customer support services.
2. Determine the total cost of providing customer support services.
3. Subtract the total cost of providing customer support services from the total revenue generated from customer support services.
4. Divide the result by the total revenue generated from customer support services.
5. Multiply the result by 100 to get the customer support margin as a percentage.

For example, if your total revenue generated from customer support services is $100,000 and your total cost of providing customer support services is $80,000, your customer support margin would be:

($100,000 - $80,000) / $100,000 x 100 = 20%

Your customer support margin is 20%, which means that for every dollar of revenue generated from customer support services, you earn 20 cents in profit.

Calculating customer support margin is an important part of running a successful business. By understanding the profitability of your customer support services, you can make informed decisions about pricing, costs, and investments in new services or technologies. Use the steps outlined in this article to calculate your customer support margin and start making data-driven decisions about your customer support operations.

How Do You Calculate Customer Support Margin in Sage 300

Sage 300 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 Sage 300 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 Sage 300, 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 Sage 300 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 Sage 300 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.