ARPU (Average Revenue Per User)

Average Revenue Per User (ARPU) is a metric used by businesses, especially in the telecommunications and subscription-based industries, to measure the average income generated from each customer or user over a specific period, typically one month. To calculate ARPU, add up the total revenue earned from all customers in the period and then divide it by the total number of customers. ARPU helps businesses understand how much, on average, each customer contributes to their revenue stream. It's a valuable metric for assessing the effectiveness of pricing strategies, tracking customer value, and making decisions about marketing efforts and service improvements to increase revenue per user over time.