This metric shows an average customer's worth to you in a set time period. In combination with the prediction of how long a customer will stay with your business, it enables you to calculate Customer Lifetime Value. It can be especially insightful if you track the ARPU for different customer acquisition channels. This gives you an understanding of how valuable different marketing channels are to you.
Alias | Average Revenue Per Account |
Abbreviation | ARPU |
Unit | Currency (Euro/Dollar/YEN/...) |
Calculation
APRU is calculated by dividing the Monthly Recurring Revenue by the total number of paying users.
MRR
÷ Σ of paying users
_______________
ARPU
_______________
Example
A company has an MRR of 12,000€ and 220 paying customers.
12,000 €
÷ 220
________
54,55 €
________