How To Calculate Gross Dollar Retention in Netsuite | Arithmix

Calculating gross dollar retention is an important metric for any business that wants to understand how much revenue they are retaining from their existing customers. It's a simple calculation that can provide valuable insights into the health of your business and help you make informed decisions about future growth and expansion.

What Is Gross Dollar Retention?

Gross dollar retention is the percentage of revenue that a business retains from its existing customers over a given period of time. It takes into account both the revenue generated from existing customers and any revenue lost due to churn or cancellations. Essentially, it measures the ability of a business to keep its customers and generate recurring revenue from them.

To calculate gross dollar retention, you need to know the total revenue generated from existing customers at the beginning of a period, and then compare it to the total revenue generated from those same customers at the end of the period. Any revenue lost due to churn or cancellations is subtracted from the total, and the resulting number is divided by the starting revenue to get the gross dollar retention percentage.

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 existing customers. It can help you identify areas of your business that are performing well and areas that need improvement. For example, if your gross dollar retention is high, it may indicate that your customers are satisfied with your product or service and are likely to continue doing business with you in the future. On the other hand, if your gross dollar retention is low, it may indicate that you need to focus on improving customer satisfaction or addressing issues that are causing customers to churn.

Calculating gross dollar retention on a regular basis can also help you track changes over time and identify trends that may be impacting your business. For example, if your gross dollar retention is decreasing over time, it may indicate that you need to make changes to your product or service to better meet the needs of your customers.

In conclusion, calculating gross dollar retention is a simple yet powerful way to measure the health of your business and make informed decisions about future growth and expansion. By understanding this important metric and tracking it over time, you can ensure that your business is on the right track and set yourself up for long-term success.

How Do You Calculate Gross Dollar Retention in Netsuite

Netsuite 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 Netsuite 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 Netsuite, 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 Netsuite 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 Netsuite 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.