How To Calculate ARPU in Kantana | Arithmix

Calculating ARPU (Average Revenue Per User) is an important metric for businesses to understand how much revenue they are generating per customer. It is a simple calculation that can provide valuable insights into the health of your business. In this article, we will explain what ARPU is, when it is valuable to calculate it, and how to calculate it in Kantana.

What Is ARPU?

ARPU is a metric that measures the average revenue generated by each user or customer. It is calculated by dividing the total revenue generated by the total number of users or customers. ARPU is a useful metric for businesses that offer subscription-based services or products.

For example, if a business has 100 customers and generates $10,000 in revenue, the ARPU would be $100. This means that on average, each customer is generating $100 in revenue for the business.

When Is It Valuable To Calculate ARPU?

ARPU is valuable for businesses that want to understand how much revenue they are generating per customer. It can help businesses identify trends in customer behavior and make informed decisions about pricing, marketing, and product development.

ARPU is particularly useful for businesses that offer subscription-based services or products. By tracking ARPU over time, businesses can see if their revenue per customer is increasing or decreasing. This can help them identify areas where they need to improve their product or service to increase revenue.

How To Calculate ARPU in Kantana

In Kantana, calculating ARPU is a simple process. First, you need to determine the total revenue generated by your business. This can be done by adding up all of the revenue generated from your customers.

Next, you need to determine the total number of users or customers. This can be done by counting the number of active users or customers during a specific period of time, such as a month or a quarter.

Once you have these two numbers, you can calculate ARPU by dividing the total revenue by the total number of users or customers. The formula for calculating ARPU in Kantana is:

ARPU = Total Revenue / Total Number of Users or Customers

For example, if your business generated $10,000 in revenue and had 100 active customers during the month of January, the ARPU would be $100.

Calculating ARPU in Kantana is a simple process that can provide valuable insights into the health of your business. By tracking ARPU over time, businesses can identify trends in customer behavior and make informed decisions about pricing, marketing, and product development.

How Do You Calculate ARPU in Kantana

Kantana 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 Kantana 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 Kantana, 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 Kantana 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 Kantana 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.