What is ARPU?
Average Revenue Per User measures how much revenue a business generates per customer over a specific period. It helps assess revenue efficiency.
How is ARPU calculated?
ARPU equals total revenue divided by the number of users over a given period.
Why is ARPU important?
It shows whether growth depends on increasing users or increasing revenue per user. This insight informs pricing and growth strategies.
Which businesses use ARPU?
Subscription based and digital businesses such as SaaS platforms, telecom providers, and streaming services rely heavily on ARPU.
How can ARPU increase?
Businesses increase ARPU by improving pricing strategies, upselling services, or increasing customer engagement.