How To Calculate Lifetime Value in MS Dynamics | Arithmix

Calculating the lifetime value of a customer is an important metric for any business. It helps you understand the total value a customer brings to your business over the course of their relationship with you. By calculating this value, you can make informed decisions about how much to invest in acquiring and retaining customers, as well as how to prioritize your marketing efforts.

What Is Lifetime Value?

Lifetime value is the total amount of revenue a customer will generate for your business over the course of their relationship with you. This includes all purchases they make, as well as any additional revenue they generate through referrals or other means. By calculating lifetime value, you can get a better understanding of the true value of each customer to your business.

For example, let's say you run an online store that sells clothing. If a customer makes a single purchase of $50, their lifetime value might not seem very high. However, if that customer makes multiple purchases over the course of several years, their lifetime value could be much higher.

When Is It Valuable To Calculate Lifetime Value?

Calculating lifetime value is valuable for any business, but it is particularly important for businesses that rely on repeat customers. For example, if you run a subscription-based service, understanding the lifetime value of your customers is essential for determining how much you can afford to spend on customer acquisition.

Similarly, if you run an e-commerce store, understanding the lifetime value of your customers can help you determine how much you can afford to spend on advertising and other marketing efforts. By knowing the lifetime value of your customers, you can make informed decisions about how much to invest in acquiring and retaining customers.

Overall, calculating lifetime value is an important metric for any business that wants to understand the true value of its customers. By taking the time to calculate this metric, you can make informed decisions about how to allocate your resources and prioritize your marketing efforts.

How Do You Calculate Lifetime Value in MS Dynamics

MS Dynamics itself isn’t naturally geared towards letting you calculate complex metrics like Lifetime Value. As an alternative, teams typically use products like Arithmix to import data from MS Dynamics 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 MS Dynamics, combine it with data from other systems, and create calculations like Lifetime Value.

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 Lifetime Value in Arithmix

Calculating metrics like Lifetime Value is simple in Arithmix. Once you've created your free account, you’ll be able to import your MS Dynamics data, and use it to create natural language formulas for metrics like Lifetime Value.

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