How To Calculate Magic Number in Dynamics365 | Arithmix

Learn how to calculate the magic number in Dynamics365 with our step-by-step guide. Understand the importance of this calculation and how it can improve your business operations. Start optimizing your Dynamics365 system today.

If you're looking to calculate the magic number in Dynamics365, you've come to the right place. In this article, we'll explain what the magic number is, when it's valuable to calculate it, and how to calculate it step-by-step.

What Is Magic Number?

The magic number is a term used in business to describe the number of customers a company needs to acquire or retain in order to achieve a certain level of growth or profitability. It's a valuable metric for businesses to track, as it helps them understand how many customers they need to acquire or retain to achieve their goals.

For example, if a company wants to grow its revenue by 20% in the next year, it might calculate its magic number to determine how many new customers it needs to acquire to achieve that growth. Alternatively, if a company wants to maintain its current level of revenue, it might calculate its magic number to determine how many customers it needs to retain to achieve that goal.

When Is It Valuable To Calculate Magic Number?

Calculating the magic number is valuable for any business that wants to grow or maintain its revenue. By understanding how many customers it needs to acquire or retain to achieve its goals, a business can develop targeted marketing and sales strategies to reach those customers.

Additionally, calculating the magic number can help businesses identify areas where they need to improve their customer acquisition or retention strategies. For example, if a business calculates its magic number and realizes that it needs to acquire a large number of new customers to achieve its growth goals, it might invest in new marketing campaigns or sales initiatives to attract those customers.

How To Calculate Magic Number

Calculating the magic number involves a few simple steps:

1. Determine the time period you want to calculate the magic number for (e.g. one year)
2. Calculate your revenue for that time period
3. Calculate your customer acquisition or retention rate for that time period

For example, let's say a company wants to calculate its magic number for the past year. It generated \$1 million in revenue and acquired 500 new customers during that time period. To calculate its magic number, it would divide \$1 million by 500, resulting in a magic number of 2,000. This means the company needs to acquire or retain 2,000 customers to achieve its revenue goals.

Overall, calculating the magic number is a valuable exercise for any business looking to grow or maintain its revenue. By understanding how many customers it needs to acquire or retain, a business can develop targeted strategies to reach those customers and achieve its goals.

How Do You Calculate Magic Number in Dynamics365

Dynamics365 itself isn’t naturally geared towards letting you calculate complex metrics like Magic Number. As an alternative, teams typically use products like Arithmix to import data from Dynamics365 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 Dynamics365, combine it with data from other systems, and create calculations like Magic Number.

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.