How To Calculate ARPU in Odoo ERP | Arithmix

Calculating ARPU, or Average Revenue Per User, is an important metric for any business looking to understand the financial performance of their customer base. It can help you to identify trends, track growth, and make informed decisions about pricing and marketing strategies. In this article, we will explore what ARPU is, why it is valuable to calculate, and how to calculate it in Odoo ERP.

What Is ARPU?

ARPU is a financial metric that measures the average amount of revenue generated by each customer over a given period of time. It is calculated by dividing the total revenue generated by the number of customers. For example, if a business generates $10,000 in revenue from 100 customers in a month, the ARPU would be $100.

ARPU can be calculated for any time period, such as a day, week, month, or year. It is often used by subscription-based businesses, such as software-as-a-service (SaaS) companies, to track the average revenue generated by each customer per month.

When Is It Valuable To Calculate ARPU?

Calculating ARPU can be valuable for any business that wants to understand the financial performance of their customer base. It can help you to identify trends, track growth, and make informed decisions about pricing and marketing strategies.

For example, if your ARPU is increasing over time, it may indicate that your customers are becoming more engaged with your product or service, or that you are successfully upselling or cross-selling to them. On the other hand, if your ARPU is decreasing, it may indicate that your customers are churning or that your pricing strategy needs to be adjusted.

ARPU can also be used to compare the financial performance of different customer segments or cohorts. For example, you may want to calculate the ARPU for customers who have been with your business for less than a year versus those who have been with you for more than a year. This can help you to identify which segments are the most valuable and where you should focus your marketing and retention efforts.

How To Calculate ARPU In Odoo ERP

Calculating ARPU in Odoo ERP is a straightforward process. Here are the steps:

1. Go to the Sales app in Odoo ERP.
2. Select the Reporting tab.
3. Click on the Sales Analysis report.
4. Select the time period you want to calculate ARPU for.
5. Click on the Group By dropdown and select Customer.
6. Click on the Measure dropdown and select Revenue.
7. Click on the Calculate button to generate the report.
8. Divide the total revenue by the number of customers to calculate the ARPU.

By following these steps, you can easily calculate the ARPU for your business in Odoo ERP. Remember to use this metric in conjunction with other financial and performance metrics to get a complete picture of your business's health and growth.

How Do You Calculate ARPU in Odoo ERP

Odoo ERP 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 Odoo ERP 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 Odoo ERP, 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 Odoo ERP 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 Odoo ERP 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.