# How To Calculate Gross Dollar Retention in NetSuite ERP | Arithmix

Learn how to calculate gross dollar retention in NetSuite ERP with our step-by-step guide. Improve your understanding of this important metric and optimize your business's revenue growth.

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 measures the amount of revenue that a business retains from its existing customers over a given period of time, typically a year. Gross dollar retention is calculated by taking the total amount of revenue generated from existing customers at the beginning of the period and comparing it to the total amount of revenue generated from those same customers at the end of the period.

## What Is Gross Dollar Retention?

Gross dollar retention is a key metric that helps businesses understand how much revenue they are retaining from their existing customers. This metric is important because it allows businesses to track the effectiveness of their customer retention efforts and identify areas where they can improve. By measuring gross dollar retention, businesses can also identify which customers are most valuable to their business and focus their efforts on retaining those customers.

For example, if a business has a gross dollar retention rate of 80%, this means that it has retained 80% of the revenue generated from its existing customers over a given period of time. This metric is calculated by taking the total amount of revenue generated from existing customers at the beginning of the period and comparing it to the total amount of revenue generated from those same customers at the end of the period.

## When Is It Valuable To Calculate Gross Dollar Retention?

Gross dollar retention is valuable to calculate for any business that wants to understand how much revenue it is retaining from its existing customers. This metric is particularly valuable for businesses that rely heavily on recurring revenue from subscription-based services or products. By tracking gross dollar retention, these businesses can identify which customers are most likely to renew their subscriptions or make repeat purchases, and focus their retention efforts on those customers.

Gross dollar retention is also valuable for businesses that want to identify areas where they can improve their customer retention efforts. By tracking this metric over time, businesses can identify trends and patterns in customer behavior and adjust their retention strategies accordingly. For example, if a business notices that its gross dollar retention rate is declining, it may need to invest more resources in customer support or product development to improve the customer experience and retain more customers.

In conclusion, 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. By measuring this metric over time, businesses can identify trends and patterns in customer behavior, focus their retention efforts on the most valuable customers, and adjust their retention strategies to improve customer satisfaction and loyalty.

## How Do You Calculate Gross Dollar Retention in NetSuite ERP

NetSuite ERP 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 ERP 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 ERP, 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.