Growth

ARPU: Average Revenue per User

Definition of

ARPU: Average Revenue per User

ARPU is a measure of the average revenue generated by a single user over a given period of time.

Detailed Description of

ARPU: Average Revenue per User

ARPU (Average Revenue Per User) is a key metric used in product management to measure the average revenue generated from each user. It is calculated by dividing the total revenue generated from a product or service by the total number of users. ARPU can be used to measure the success of a product or service, as well as to identify areas for improvement. It can also be used to compare different products or services and determine which ones are more successful. Additionally, ARPU can be used to track customer lifetime value and customer acquisition costs.

Examples of

ARPU: Average Revenue per User

Example: A mobile phone company has 10,000 customers. The company earns a total of $100,000 in revenue from these customers over the course of a month. The ARPU for this company would be $10 ($100,000/10,000). This means that on average each customer is generating $10 in revenue for the company each month.

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