Average Revenue Per User Calculator
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Q: How can I increase my ARPU by targeting higher-value customers?
A: Cold email campaigns help you reach premium prospects who are more likely to pay higher prices, improving your average revenue per user. [Start your free trial →]
Q: What is ARPU and how is it calculated?
A: ARPU stands for Average Revenue Per User. It's calculated by dividing the total amount of revenue generated by the company by the total number of users (customers). For example, if a company has $10 million in revenue with 10,000 customers, the ARPU is $100.
Q: What's the difference between ARPU and ARPPU?
A: ARPPU refers to average revenue per paying customer over a given time period. While ARPU includes all users (including free users), ARPPU focuses only on users who actually generate revenue, giving a clearer picture of paying customer value.
Q: How often should I calculate ARPU?
A: A month is the most common time period for calculating ARPU because most subscription-based companies have a monthly billing plan. However, you can calculate it weekly, quarterly, or annually depending on your business model and needs.
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