How To Calculate Gross Dollar Retention in SugarCRM | Arithmix

Calculating gross dollar retention is an important metric for any business that wants to understand its financial performance. It is a measure of how much revenue a company retains from its existing customers over a given period of time. In this article, we will explain what gross dollar retention is, when it is valuable to calculate it, and how to calculate it in SugarCRM.

What Is Gross Dollar Retention?

Gross dollar retention is a metric that measures the amount of revenue a company retains from its existing customers over a given period of time. It is calculated by taking the total revenue generated from existing customers at the beginning of a period and comparing it to the revenue generated from those same customers at the end of the period. The difference between the two is the gross dollar retention rate.

For example, if a company has 100 customers at the beginning of the year and generates $1 million in revenue from those customers, and at the end of the year, it still has 100 customers and generates $1.2 million in revenue from them, the gross dollar retention rate is 120%.

When Is It Valuable To Calculate Gross Dollar Retention?

Gross dollar retention is valuable to calculate for any business that wants to understand its financial performance and the loyalty of its customer base. It is particularly important for businesses that rely heavily on recurring revenue from existing customers, such as subscription-based businesses or SaaS companies.

By calculating gross dollar retention, businesses can identify trends in customer behavior and make informed decisions about how to improve customer retention and increase revenue. For example, if a business sees a decline in gross dollar retention, it may indicate that customers are not satisfied with the product or service and may need to be offered incentives or improvements to keep them loyal.

How to Calculate Gross Dollar Retention in SugarCRM

Calculating gross dollar retention in SugarCRM is a straightforward process. First, you need to identify the period for which you want to calculate gross dollar retention. This could be a month, a quarter, or a year, depending on your business needs.

Next, you need to gather data on the revenue generated from existing customers at the beginning and end of the period. In SugarCRM, you can use the reporting features to generate a report that shows the revenue generated from existing customers for the chosen period.

Once you have this data, you can calculate the gross dollar retention rate by dividing the revenue generated from existing customers at the end of the period by the revenue generated from existing customers at the beginning of the period, and then multiplying by 100 to get a percentage.

For example, if the revenue generated from existing customers at the beginning of the period was $1 million and the revenue generated from existing customers at the end of the period was $1.2 million, the gross dollar retention rate would be calculated as follows:

Gross Dollar Retention Rate = ($1.2 million / $1 million) x 100 = 120%

By regularly calculating gross dollar retention in SugarCRM, businesses can gain valuable insights into their financial performance and make informed decisions about how to improve customer retention and increase revenue.

How Do You Calculate Gross Dollar Retention in SugarCRM

SugarCRM 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 SugarCRM 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 SugarCRM, 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 SugarCRM 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 SugarCRM 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.