How To Calculate Gross Dollar Retention in Insightly | Arithmix
Learn how to calculate Gross Dollar Retention in Insightly with our step-by-step guide. Maximize your revenue and improve your business strategy with this essential metric.
Calculating gross dollar retention is an important metric for any business that wants to understand how much revenue it is retaining from its existing customers. This metric is particularly valuable for subscription-based businesses, where customer retention is critical to long-term success. In this article, we'll explore what gross dollar retention is, why it's valuable to calculate, and how to calculate it.
What Is Gross Dollar Retention?
Gross dollar retention is a measure of how much revenue a business is retaining from its existing customers over a given period of time. It takes into account both the customers who have renewed their subscriptions and those who have upgraded to higher-priced plans. This metric is calculated by dividing the total revenue from existing customers at the end of a period by the total revenue from those same customers at the beginning of the period.
For example, if a business had $100,000 in revenue from existing customers at the beginning of the year and $120,000 in revenue from those same customers at the end of the year, its gross dollar retention rate would be 120%.
When Is It Valuable To Calculate Gross Dollar Retention?
Gross dollar retention is a valuable metric for any business that relies on recurring revenue from its customers. By tracking this metric over time, businesses can gain insights into their customer retention rates and identify areas for improvement. For example, if a business sees a decline in its gross dollar retention rate, it may indicate that customers are not finding enough value in the product or service and are choosing to cancel their subscriptions.
In addition, gross dollar retention can help businesses identify opportunities to increase revenue from existing customers. By tracking which customers are upgrading to higher-priced plans, businesses can identify which features or services are most valuable to their customers and use that information to upsell or cross-sell additional products or services.
Overall, calculating gross dollar retention is a valuable exercise for any business that wants to understand its customer retention rates and identify opportunities for growth. By tracking this metric over time and taking action to improve it, businesses can increase customer loyalty, drive revenue growth, and achieve long-term success.
How Do You Calculate Gross Dollar Retention in Insightly
Insightly itself isn’t naturally geared towards letting you calculate complex metrics like Gross Dollar Retention. As an alternative, teams typically use products like Arithmix to import data from Insightly 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 Insightly, combine it with data from other systems, and create calculations like Gross Dollar Retention.
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 Gross Dollar Retention in Arithmix
Calculating metrics like Gross Dollar Retention is simple in Arithmix. Once you've created your free account, you’ll be able to import your Insightly data, and use it to create natural language formulas for metrics like Gross Dollar Retention.
Arithmix is designed to give you the power to build any calculations you want on top of your Insightly 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.Use Arithmix free