Average Revenue Per User
Average Revenue Per User (ARPU) is the mean revenue generated per customer or user account. It's a key indicator of pricing power and monetization efficiency.
Monthly revenue: $100K. Active customers: 500. ARPU = $100K / 500 = $200/month.
ARPU directly impacts LTV and unit economics. Increasing ARPU (through pricing, upsells, or premium features) is often the fastest lever to improve business health. Tracking ARPU by cohort reveals pricing and product insights.
Consumer SaaS
SMB SaaS
Mid-market
Enterprise
ARPU = Average Revenue Per User. ARPA = Average Revenue Per Account. For B2B with multiple users per account, ARPA is usually more meaningful. Use whichever matches your business model.
Raise prices (often underpriced), introduce usage-based pricing, add premium tiers, bundle services, expand seats/users, and reduce discounting.
Both. Blended ARPU shows overall trend. Segmented ARPU (by plan, cohort, channel) reveals where value is concentrated and where to focus.
Customer Lifetime Value
Customer Lifetime Value (LTV or CLTV) is the total revenue you expect to earn fr...
Annual Contract Value
Annual Contract Value (ACV) is the average annualized revenue per customer contr...
Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) is the predictable revenue your business earns e...
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