How To Calculate ARPA in Epicor | Arithmix

Calculating ARPA (Average Revenue Per Account) is an important metric for any business looking to measure its financial performance. ARPA is a measure of the average revenue generated by each customer or account, and it can be calculated using a simple formula. In this article, we will explain what ARPA is, when it is valuable to calculate it, and how to calculate it.

What Is ARPA?

ARPA is a metric that measures the average revenue generated by each customer or account. It is calculated by dividing the total revenue generated by the number of customers or accounts. For example, if a company generates $100,000 in revenue from 100 customers, the ARPA would be $1,000 per customer.

ARPA is a useful metric because it provides insight into the revenue potential of each customer or account. By understanding the average revenue generated by each customer, businesses can identify opportunities to increase revenue by targeting high-value customers or by upselling existing customers.

When Is It Valuable To Calculate ARPA?

ARPA is a valuable metric for businesses of all sizes and industries. It is particularly useful for businesses that rely on recurring revenue streams, such as subscription-based services or SaaS (Software as a Service) companies. By calculating ARPA, these businesses can identify trends in customer behavior and make data-driven decisions to improve their revenue streams.

ARPA is also valuable for businesses that offer multiple products or services. By calculating ARPA for each product or service, businesses can identify which offerings are most profitable and focus their efforts on promoting those products or services.

How to Calculate ARPA

Calculating ARPA is a simple process that involves dividing the total revenue generated by the number of customers or accounts. Here is the formula:

ARPA = Total Revenue / Number of Customers or Accounts

For example, if a company generated $100,000 in revenue from 100 customers, the ARPA would be:

ARPA = $100,000 / 100 = $1,000 per customer

It is important to note that ARPA should be calculated over a specific period of time, such as a month or a quarter. This allows businesses to track changes in customer behavior and revenue over time.

In conclusion, calculating ARPA is an important metric for businesses looking to measure their financial performance. By understanding the average revenue generated by each customer or account, businesses can identify opportunities to increase revenue and make data-driven decisions to improve their revenue streams.

How Do You Calculate ARPA in Epicor

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

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 ARPA in Arithmix

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

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