How To Calculate ARPU in SAP Sales Cloud | Arithmix

ARPU, or Average Revenue Per User, is a metric used to measure the average revenue generated by each customer or user of a product or service. It is a valuable tool for businesses to understand the profitability of their customer base and to identify areas for growth and improvement.

What Is ARPU?

ARPU is calculated by dividing the total revenue generated by a product or service by the number of users or customers. For example, if a company generates $100,000 in revenue from 1,000 customers, the ARPU would be $100.

ARPU is often used in subscription-based businesses, such as software as a service (SaaS) companies, to measure the average revenue generated by each subscriber. It can also be used in other industries, such as telecommunications, to measure the average revenue generated by each customer.

ARPU is a useful metric because it provides insight into the revenue potential of a customer base. By understanding the average revenue generated by each customer, businesses can identify opportunities to increase revenue, such as upselling or cross-selling additional products or services.

When Is It Valuable To Calculate ARPU?

ARPU is valuable to calculate in a variety of situations. For example, it can be useful for startups to understand the revenue potential of their customer base and to identify areas for growth. It can also be useful for established businesses to track changes in ARPU over time and to identify trends or patterns.

ARPU can also be useful for businesses that offer multiple products or services. By calculating ARPU for each product or service, businesses can identify which offerings are the most profitable and focus their efforts on those areas.

Overall, calculating ARPU is a valuable tool for businesses to understand the revenue potential of their customer base and to identify areas for growth and improvement. By tracking changes in ARPU over time and focusing on increasing this metric, businesses can increase their profitability and achieve long-term success.

How Do You Calculate ARPU in SAP Sales Cloud

SAP Sales Cloud 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 SAP Sales Cloud 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 Sales Cloud, 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 SAP Sales Cloud 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 SAP Sales Cloud 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.