Definition
Average Revenue Per User (ARPU) calculates the average revenue generated per user or customer over a specific period, often used in subscription or telecom industries.
Related Services
ARPU is utilized in revenue analysis, customer segmentation, and performance benchmarking, particularly in SaaS and telecom businesses.
Problem and Application
ARPU can be influenced by pricing models, discounts, or customer churn. Businesses use ARPU to evaluate profitability and design customer retention strategies.
Conclusion
ARPU is a critical metric for understanding customer value and revenue trends, enabling businesses to optimize pricing and growth strategies.
