How To Calculate ARPA in Freshsales | Arithmix

Calculating ARPA (Average Revenue Per Account) is an essential metric for any business that wants to measure its revenue growth and customer acquisition strategy. In simple terms, ARPA is the average amount of revenue generated per customer account over a specific period. In this article, we will explain what ARPA is, when it's valuable to calculate ARPA, and how to calculate it in Freshsales.

What Is ARPA?

ARPA is a key metric used by businesses to determine the average revenue generated per customer account. It is calculated by dividing the total revenue generated by the number of accounts or customers. For example, if a business generates $100,000 in revenue from 100 customers, the ARPA would be $1,000.

ARPA is a useful metric for businesses to track because it provides insight into their revenue growth and customer acquisition strategy. By monitoring ARPA, businesses can identify which customers are generating the most revenue and adjust their sales and marketing efforts accordingly.

When Is It Valuable To Calculate ARPA?

ARPA is valuable to calculate when a business wants to measure its revenue growth and customer acquisition strategy. It is particularly useful for businesses that offer subscription-based services, as it allows them to track the revenue generated per customer over time.

ARPA is also valuable for businesses that want to identify which customers are generating the most revenue. By analyzing ARPA, businesses can identify their high-value customers and develop strategies to retain and upsell them.

How to Calculate ARPA in Freshsales

Calculating ARPA in Freshsales is a straightforward process. Here are the steps:

1. Log in to your Freshsales account.
2. Click on the "Reports" tab in the top navigation bar.
3. Select "Revenue" from the left-hand menu.
4. Choose the time period you want to analyze.
5. Click on the "Accounts" tab.
6. Divide the total revenue generated by the number of accounts to get the ARPA.

By following these steps, you can easily calculate ARPA in Freshsales and gain valuable insights into your revenue growth and customer acquisition strategy.

How Do You Calculate ARPA in Freshsales

Freshsales 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 Freshsales 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 Freshsales, 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 Freshsales 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 Freshsales 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.