How To Calculate Gross Logo Retention Rate in TallyPrime | Arithmix

Calculating gross logo retention rate is an important metric for any business looking to measure customer loyalty and satisfaction. It helps businesses understand how many customers are returning to their brand and how many are leaving. This information is crucial for making informed decisions about marketing strategies, product development, and customer service. In this article, we will explain what gross logo retention rate is, when it is valuable to calculate, and how to calculate it.

What Is Gross Logo Retention Rate?

Gross logo retention rate is the percentage of customers who continue to use a brand's products or services over a given period of time. This metric is calculated by dividing the number of customers who continue to use a brand by the total number of customers at the beginning of the period. For example, if a company has 100 customers at the beginning of the year and 80 of them continue to use the company's products or services at the end of the year, the gross logo retention rate is 80%.

Gross logo retention rate is different from net logo retention rate, which takes into account new customers gained during the period. Net logo retention rate subtracts the number of new customers gained from the total number of customers at the beginning of the period before calculating the retention rate. Gross logo retention rate only considers the number of customers who continue to use the brand, regardless of whether they are new or existing customers.

When Is It Valuable To Calculate Gross Logo Retention Rate?

Gross logo retention rate is valuable to calculate for any business that wants to measure customer loyalty and satisfaction. It can help businesses identify areas where they need to improve customer service, product quality, or marketing strategies. It can also help businesses understand how well they are retaining customers compared to their competitors.

Gross logo retention rate is particularly valuable for businesses that rely heavily on repeat customers, such as subscription-based services or businesses that sell high-end products. These businesses need to maintain a high level of customer satisfaction to retain customers and generate revenue.

How To Calculate Gross Logo Retention Rate

To calculate gross logo retention rate, follow these steps:

1. Determine the period you want to measure. This could be a month, a quarter, or a year.
2. Count the number of customers who used your brand's products or services at the beginning of the period.
3. Count the number of customers who continued to use your brand's products or services at the end of the period.
4. Divide the number of customers who continued to use your brand by the number of customers at the beginning of the period.
5. Multiply the result by 100 to get the percentage.

For example, if a company had 500 customers at the beginning of the year and 450 of them continued to use the company's products or services at the end of the year, the gross logo retention rate would be:

(450 / 500) x 100 = 90%

By following these steps, businesses can easily calculate their gross logo retention rate and use this information to make informed decisions about their marketing strategies, product development, and customer service.

How Do You Calculate Gross Logo Retention Rate in TallyPrime

TallyPrime itself isn’t naturally geared towards letting you calculate complex metrics like Gross Logo Retention Rate. As an alternative, teams typically use products like Arithmix to import data from TallyPrime 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 TallyPrime, combine it with data from other systems, and create calculations like Gross Logo Retention Rate.

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 Logo Retention Rate in Arithmix

Calculating metrics like Gross Logo Retention Rate is simple in Arithmix. Once you've created your free account, you’ll be able to import your TallyPrime data, and use it to create natural language formulas for metrics like Gross Logo Retention Rate.

Arithmix is designed to give you the power to build any calculations you want on top of your TallyPrime 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.