The Average Revenue Per User shows how much revenue is generated on average by one account in a set time period.
Why use it
This metric shows an average customer’s worth to you in a set time period. In combination with a prediction of how long a customer will stay with your business it enabels you to calculate Customer Lifetime Value. It can be especially insightful if you track the ARPU for different customer acqusition channels. This gives you an understanding of how valuable different marketing channels are to you.
|Alias||Average Revenue Per Account|
|÷ ∑ of paying users|
A company has a MRR of 12.000 € and 220 paying customers.