How To Calculate ARPA in SAP BusinessByDesign | Arithmix

Learn how to calculate average revenue per account (ARPA) in SAP BusinessByDesign with our step-by-step guide. Maximize your revenue potential and gain valuable insights into your business performance.

Calculating ARPA (Average Revenue Per Account) is an important metric for any business looking to understand its revenue streams. ARPA is a measure of the average amount of revenue generated by each customer account over a specific period of time. This metric is particularly useful for businesses that operate on a subscription-based model, as it helps to identify trends in customer behavior and revenue growth.

What Is ARPA?

ARPA is a metric that is used to measure the average revenue generated by each customer account over a specific period of time. This metric is calculated by dividing the total revenue generated by the number of customer accounts. For example, if a business generates $100,000 in revenue from 100 customer accounts over a period of one month, the ARPA would be $1,000.

ARPA is a valuable metric for businesses looking to understand their revenue streams and identify trends in customer behavior. By tracking ARPA over time, businesses can identify changes in customer behavior and adjust their strategies accordingly. For example, if ARPA is decreasing over time, it may be an indication that customers are becoming less engaged with the product or service, and the business may need to invest in customer retention strategies.

When Is It Valuable To Calculate ARPA?

ARPA is a valuable metric for any business that operates on a subscription-based model. By tracking ARPA over time, businesses can identify trends in customer behavior and adjust their strategies accordingly. For example, if ARPA is increasing over time, it may be an indication that customers are becoming more engaged with the product or service, and the business may want to invest in customer acquisition strategies.

ARPA is also a valuable metric for businesses that offer multiple products or services. By tracking ARPA for each product or service, businesses can identify which offerings are generating the most revenue and adjust their strategies accordingly. For example, if ARPA is higher for one product or service than another, the business may want to invest more resources in promoting the higher-performing offering.

In conclusion, calculating ARPA is a valuable metric for any business looking to understand its revenue streams and identify trends in customer behavior. By tracking ARPA over time, businesses can adjust their strategies accordingly and ensure long-term success.

How Do You Calculate ARPA in SAP BusinessByDesign

SAP BusinessByDesign 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 SAP BusinessByDesign 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 SAP BusinessByDesign, 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.

arithmix product demo

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 SAP BusinessByDesign 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 SAP BusinessByDesign 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