Average revenue per user (ARPU)

So, ARPU is basically the mathematical love child of your revenue and customer base. It's the average amount of money you squeeze out of each delightful customer, like milking a very profitable cow but with less actual cow milking and more spreadsheets. If you want your ARPU to go up, you probably need to either get people to buy more stuff or find more rich people.

Average Revenue Per User (ARPU) is a key performance metric used predominantly in subscription-based and telecommunications industries to assess the revenue generated per user or unit over a specific period, typically a month or quarter. By dividing the total revenue by the total number of users, businesses can gain insights into user profitability and operational efficiency. ARPU provides a clear picture of how well a company is monetizing its user base, allowing it to benchmark against competitors and make informed decisions on pricing strategies, customer acquisition, and retention programs. It is an essential indicator of financial health and guides marketing efforts by identifying potential areas for revenue growth and value enhancement per user segment.