How To Calculate ARPU in Sage CRM | Arithmix

Calculating ARPU (Average Revenue Per User) is an important metric for any business that wants to understand the financial performance of its customer base. ARPU is a measure of the average amount of revenue generated by each customer over a specific period of time. In this article, we will explain what ARPU is, when it is valuable to calculate ARPU, and how to calculate ARPU in Sage CRM.

What Is ARPU?

ARPU is a key performance indicator that helps businesses understand the revenue generated by each customer. 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, the ARPU would be $100.

ARPU is a useful metric for businesses that offer subscription-based services or products. It helps businesses understand the average revenue generated by each customer and can be used to identify trends in customer behavior. For example, if the ARPU is decreasing over time, it may indicate that customers are spending less or canceling their subscriptions.

When Is It Valuable To Calculate ARPU?

ARPU is valuable to calculate when a business wants to understand the financial performance of its customer base. It can be used to identify trends in customer behavior, such as changes in spending habits or customer churn. ARPU is also useful for businesses that want to compare their performance to industry benchmarks or competitors.

ARPU is particularly valuable for businesses that offer subscription-based services or products. It can help businesses understand the revenue generated by each customer and identify opportunities to increase revenue through upselling or cross-selling.

How to Calculate ARPU in Sage CRM

To calculate ARPU in Sage CRM, you will need to follow these steps:

1. Export your customer data from Sage CRM into a spreadsheet.
2. Calculate the total revenue generated by your customers over a specific period of time.
3. Count the number of customers who generated revenue during that period.
4. Divide the total revenue by the number of customers to calculate the ARPU.

For example, if your business generated $100,000 in revenue from 500 customers over the past month, the ARPU would be $200.

By calculating ARPU in Sage CRM, businesses can gain valuable insights into the financial performance of their customer base. This can help businesses identify opportunities to increase revenue and improve customer retention.

How Do You Calculate ARPU in Sage CRM

Sage CRM 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 Sage 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 Sage CRM, 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 Sage CRM 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 Sage 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.