How To Calculate ARPU in Drift | Arithmix

ARPU, or Average Revenue Per User, is a key metric that businesses use to measure their financial performance. It is calculated by dividing the total revenue generated by the number of users or customers. In this article, we will discuss how to calculate ARPU in Drift, a popular conversational marketing platform.

What Is ARPU?

ARPU is a metric that helps businesses understand how much revenue they are generating from each customer or user. It is a useful metric for businesses that offer subscription-based services or have a large user base. By calculating ARPU, businesses can determine the average revenue generated by each customer and use this information to make informed decisions about pricing, marketing, and customer acquisition.

ARPU is calculated by dividing the total revenue generated by the number of users or customers. For example, if a business generates $10,000 in revenue and has 1,000 customers, the ARPU would be $10.

When Is It Valuable To Calculate ARPU?

ARPU is a valuable metric for businesses that offer subscription-based services or have a large user base. It can help businesses determine the effectiveness of their pricing strategy and identify areas for improvement. For example, if a business has a low ARPU, it may indicate that their pricing is too low or that they need to focus on acquiring higher-value customers.

ARPU can also be used to track the performance of marketing campaigns. By calculating the ARPU of customers acquired through different marketing channels, businesses can determine which channels are most effective at generating revenue.

Overall, ARPU is a valuable metric for businesses of all sizes and industries. By understanding how to calculate ARPU in Drift, businesses can gain valuable insights into their financial performance and make informed decisions about pricing, marketing, and customer acquisition.

How Do You Calculate ARPU in Drift

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

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 ARPU in Arithmix

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

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