How To Calculate ARPA in NetSuite CRM | Arithmix

Calculating ARPA (Average Revenue Per Account) is an important metric for any business looking to understand their revenue streams. It allows you to determine the average amount of revenue generated per customer account, which can help you make informed decisions about your pricing strategy, customer acquisition, and retention efforts.

What Is ARPA?

ARPA is a metric that measures the average revenue generated per customer account over a specific period of time. It is calculated by dividing the total revenue generated by the number of customer accounts. For example, if your business generated $100,000 in revenue from 100 customer accounts in a month, your ARPA would be $1,000.

ARPA is a useful metric for businesses of all sizes and industries. It can help you identify trends in your revenue streams, such as which products or services are generating the most revenue per customer. This information can inform your pricing strategy and help you optimize your revenue streams.

When Is It Valuable To Calculate ARPA?

Calculating ARPA is valuable for businesses at any stage of growth. For startups, it can help you understand the potential revenue generated per customer and inform your pricing strategy. As your business grows, ARPA can help you identify opportunities to increase revenue per customer, such as upselling or cross-selling additional products or services.

ARPA is also valuable for businesses with a subscription-based model, as it can help you understand the lifetime value of a customer. By calculating ARPA over the course of a customer's subscription, you can determine the average revenue generated per customer over their lifetime. This information can help you make informed decisions about customer acquisition and retention efforts.

In conclusion, calculating ARPA is a valuable metric for any business looking to understand their revenue streams and make informed decisions about pricing, customer acquisition, and retention efforts. By dividing the total revenue generated by the number of customer accounts, you can determine the average revenue generated per account over a specific period of time.

How Do You Calculate ARPA in NetSuite CRM

NetSuite CRM 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 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 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 NetSuite CRM 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 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.