How To Calculate Magic Number in NetSuite CRM | Arithmix
Learn how to calculate the magic number in NetSuite CRM with this comprehensive guide. Discover the formula and step-by-step instructions to help you optimize your sales performance and achieve your business goals.
If you're looking to improve your business's performance, one metric you should consider is the magic number. This metric can help you understand how quickly your business is growing and how efficiently you're acquiring new customers. In this article, we'll explore what the magic number is and when it's valuable to calculate it.
What Is Magic Number?
The magic number is a metric that measures the efficiency of your business's customer acquisition efforts. It's calculated by dividing the number of new customers you acquired in a given period by the number of existing customers you had at the beginning of that period. The resulting number represents how many new customers you acquired for every existing customer you had.
For example, if you had 100 customers at the beginning of the month and you acquired 20 new customers during that month, your magic number would be 0.2. This means that for every existing customer you had, you acquired 0.2 new customers.
The magic number is a useful metric because it helps you understand how efficiently you're acquiring new customers. If your magic number is high, it means you're acquiring new customers quickly and efficiently. If your magic number is low, it means you're acquiring new customers slowly or inefficiently.
When Is It Valuable To Calculate Magic Number?
The magic number is a valuable metric to calculate in a variety of situations. Here are a few examples:
When You're Trying to Grow Your Business
If you're trying to grow your business, the magic number can help you understand how quickly you're acquiring new customers. If your magic number is high, it means you're acquiring new customers quickly and efficiently, which can help you grow your business more quickly. If your magic number is low, it may be a sign that you need to adjust your customer acquisition strategy.
When You're Evaluating Your Sales Team
The magic number can also be a useful metric when evaluating your sales team. If your sales team is acquiring new customers efficiently, your magic number should be high. If your magic number is low, it may be a sign that your sales team needs additional training or support.
When You're Considering a New Marketing Campaign
If you're considering a new marketing campaign, the magic number can help you evaluate its potential effectiveness. If your magic number increases after the campaign, it means the campaign was successful in acquiring new customers. If your magic number doesn't increase, it may be a sign that the campaign wasn't effective.
Overall, the magic number is a valuable metric to calculate if you're looking to improve your business's performance. By understanding how efficiently you're acquiring new customers, you can make informed decisions about how to grow your business and improve your customer acquisition strategy.
How Do You Calculate Magic Number in NetSuite CRM
NetSuite CRM 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 NetSuite CRM 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 NetSuite CRM, 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.
Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.
Calculating Magic Number in Arithmix
Calculating metrics like Magic Number is simple in Arithmix. Once you've created your free account, you’ll be able to import your NetSuite CRM data, and use it to create natural language formulas for metrics like Magic Number.
Arithmix is designed to give you the power to build any calculations you want on top of your NetSuite CRM 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