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metrics

ARPU (Average Revenue Per User)

Average monthly revenue generated per active user or customer account.

ARPU (Average Revenue Per User) measures the average monthly revenue generated per user or account. It's a key metric for understanding pricing effectiveness and is used in LTV calculations.

Formula

ARPU = Total MRR / Number of Active Customers

Tips

  • Track ARPU trends over time
  • Segment ARPU by plan and customer type
  • Increasing ARPU improves LTV

Related Terms

MRRLTVPRICINGEXPANSION REVENUEUNIT ECONOMICS

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