AVERAGE REVENUE PER UNIT (ARPU)

What is your average revenue per user?

ARPU stands for average revenue per unit, the unit part of the acronym can also stand for user, account or any other paying customer. This sales KPI indicates the average customer’s revenue from all your sales. It’s a simple calculation, you take your total monthly (recurring) revenue and divide it by the total amount of customers you have in your roster. This might seem obvious to some and it’s worth pointing out that if your ARPU is higher in comparison to your acquisition costs, you might run into trouble. Your customer acquisition costs should always be lower, otherwise, you’re not making any profits from your revenues.

Performance Indicators

If your ARPU is rising you should be on track. This usually means that you are signing bigger customers, or signing customers with bigger plans.

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About The Author

Anthony Crilly

Anthony Crilly is a Business Sales Expert with decades of successful experience in selling and customer engagement. Anthony specializes in business-to-business go-to-market strategies for technologies and regularly attends training session s to showcase his evolving tech trends, such as self-service, health and wellness, and people analytics tools. A strong believer in the power of positive thinking in the workplace. Anthony regularly develops internal wellness and unique value propositions campaigns to assist businesses with effective physical and mental health techniques as well as business acquisition and growth techniques. Anthony enjoys a good run, bike, swim tri-athletic performance as well as a Netflix binge but can also be found on long runs and bike rides on hilly country roads in the Adirondacks or on Conesus Lake.

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