How To Calculate ARR Booking Target in Epicor | Arithmix
Learn how to calculate your ARR booking target in Epicor with our comprehensive guide. Discover the key metrics and formulas you need to know to set realistic goals and drive business growth. Start optimizing your revenue today.
ARR (Annual Recurring Revenue) booking target is a crucial metric for businesses that offer subscription-based products or services. It helps them to set realistic revenue goals and track their progress towards achieving them. In this article, we will discuss how to calculate ARR booking target and why it is valuable for businesses.
What Is ARR Booking Target?
ARR booking target is the amount of revenue that a business aims to generate from its subscription-based products or services in a year. It is calculated by multiplying the number of active subscribers by the average revenue per user (ARPU) and then multiplying the result by 12 (the number of months in a year).
For example, if a business has 1000 active subscribers and an ARPU of $50, its ARR booking target would be:
1000 x $50 x 12 = $600,000
This means that the business aims to generate $600,000 in revenue from its subscription-based products or services in a year.
When Is It Valuable To Calculate ARR Booking Target?
Calculating ARR booking target is valuable for businesses in several ways:
1. Setting Realistic Revenue Goals
By calculating ARR booking target, businesses can set realistic revenue goals for their subscription-based products or services. This helps them to focus on achieving their revenue targets and track their progress towards them.
2. Identifying Growth Opportunities
ARR booking target also helps businesses to identify growth opportunities. For example, if a business has a low ARR booking target, it may need to focus on increasing its subscriber base or ARPU to achieve its revenue goals. On the other hand, if a business has a high ARR booking target, it may need to focus on improving its customer retention to maintain its revenue stream.
3. Evaluating Performance
Finally, calculating ARR booking target helps businesses to evaluate their performance. By comparing their actual revenue with their ARR booking target, businesses can identify areas where they need to improve and take corrective actions.
In conclusion, calculating ARR booking target is a valuable exercise for businesses that offer subscription-based products or services. It helps them to set realistic revenue goals, identify growth opportunities, and evaluate their performance. By following the steps outlined in this article, businesses can easily calculate their ARR booking target and use it to drive their growth and success.
How Do You Calculate ARR Booking Target in Epicor
Epicor itself isn’t naturally geared towards letting you calculate complex metrics like ARR Booking Target. As an alternative, teams typically use products like Arithmix to import data from Epicor 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 Epicor, combine it with data from other systems, and create calculations like ARR Booking Target.
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 ARR Booking Target in Arithmix
Calculating metrics like ARR Booking Target is simple in Arithmix. Once you've created your free account, you’ll be able to import your Epicor data, and use it to create natural language formulas for metrics like ARR Booking Target.
Arithmix is designed to give you the power to build any calculations you want on top of your Epicor 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.Use Arithmix free