How To Calculate Net Dollar Retention in Flexi | Arithmix

Calculating net dollar retention is an important metric for any business that wants to understand how much revenue it is generating from its existing customers. It is a measure of how much money a company is retaining from its customers over a given period of time, and it takes into account both the revenue generated from existing customers and the revenue lost due to customer churn.

To calculate net dollar retention, you need to start by looking at the total revenue generated from your existing customers over a given period of time. This can be done by looking at your sales data and identifying the revenue generated from customers who have made repeat purchases during the period.

Next, you need to factor in any lost revenue due to customer churn. This can be done by looking at the revenue generated from customers who have left your business during the period, and subtracting this from the total revenue generated from existing customers.

Finally, to calculate net dollar retention, you need to divide the total revenue generated from existing customers by the revenue generated from those same customers in the previous period. This will give you a percentage that represents how much revenue you are retaining from your existing customers over time.

What Is Net Dollar Retention?

Net dollar retention is a measure of how much revenue a company is generating from its existing customers over a given period of time. It takes into account both the revenue generated from repeat purchases and the revenue lost due to customer churn, and is expressed as a percentage of the revenue generated from existing customers in the previous period.

Net dollar retention is an important metric for any business that wants to understand how much revenue it is generating from its existing customers, and how effective its customer retention strategies are. It can be used to identify areas where improvements can be made, and to track the success of customer retention initiatives over time.

When Is It Valuable To Calculate Net Dollar Retention?

Calculating net dollar retention is valuable for any business that wants to understand how much revenue it is generating from its existing customers, and how effective its customer retention strategies are. It is particularly valuable for businesses that rely heavily on repeat purchases, such as subscription-based businesses or businesses with a high customer lifetime value.

By calculating net dollar retention, businesses can identify areas where improvements can be made to their customer retention strategies, and track the success of these initiatives over time. It can also be used to compare the performance of different customer segments, and to identify which segments are most valuable to the business.

Overall, calculating net dollar retention is a valuable tool for any business that wants to improve its customer retention and generate more revenue from its existing customers over time.

How Do You Calculate Net Dollar Retention in Flexi

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

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

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