| ARPU |
| Average Revenue per User |
This metric is used to measure the Revenue generated by a business from each of its individual customers or users. |
| ARPU can be a useful metric for businesses to understand their revenue performance and identify opportunities to increase revenue. For example, a business with a low ARPU may want to explore ways to increase the value of its products or services, or to attract higher-paying customers. |
How to Calculate: |
It is calculated by dividing the Total Revenue (TR) generated by the business over a specific period of time by the Total Number of Customers (TC) or users it has during that same period. |
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| For example, if a business generates $100,000 in revenue in a month and has 1,000 customers, its ARPU would be $100 ($100,000 / 1,000). ARPU is often used to compare the revenue performance of different businesses or to track the revenue performance of a single business over time. |