How To Calculate Gross Dollar Retention in SharpSpring | Arithmix
Learn how to calculate Gross Dollar Retention in SharpSpring with our step-by-step guide. Increase your understanding of this important metric and improve your business's revenue growth.
Calculating gross dollar retention is an important metric for any business, as it helps to measure the amount of revenue that is retained from existing customers over a given period of time. This metric can be particularly useful for businesses that rely heavily on recurring revenue, such as subscription-based services or SaaS companies.
What Is Gross Dollar Retention?
Gross dollar retention is a measure of how much revenue a business has retained from its existing customers over a given period of time. This metric takes into account any lost revenue due to customer churn, but does not include any revenue generated from new customers or upsells. Essentially, gross dollar retention measures the effectiveness of a business's customer retention efforts.
To calculate gross dollar retention, you need to determine the total amount of revenue that your existing customers generated during a specific period of time (such as a month or a quarter). You then need to subtract any lost revenue due to customer churn during that same period. The resulting number is your gross dollar retention.
When Is It Valuable To Calculate Gross Dollar Retention?
Gross dollar retention can be a valuable metric for any business that relies on recurring revenue, as it provides insight into how effectively the business is retaining its existing customers. By tracking gross dollar retention over time, businesses can identify trends and make adjustments to their customer retention strategies as needed.
For example, if a business notices a decline in gross dollar retention over a certain period of time, they may want to investigate the reasons for this decline. Perhaps there is an issue with the product or service that is causing customers to churn, or maybe the business needs to improve its customer support efforts. By identifying the root cause of the decline in gross dollar retention, the business can take steps to address the issue and improve customer retention.
Overall, calculating gross dollar retention can be a valuable tool for any business that wants to improve its customer retention efforts and maximize its recurring revenue. By tracking this metric over time and making adjustments as needed, businesses can ensure that they are retaining their existing customers and generating the revenue they need to succeed.
How Do You Calculate Gross Dollar Retention in SharpSpring
SharpSpring 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 SharpSpring 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 SharpSpring, 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 SharpSpring 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 SharpSpring 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