Marketing Acronyms

Average Revenue Per User (ARPU)

Average Revenue Per Paying User (ARPPU), Average Revenue Per Unit (ARPU)

What does it mean:
As the name suggests, it’s the average revenue each user gives you. 

The Formula:

Monthly Recurring Revenue (MRR) ÷ Active Customers = ARPU

Use it in a sentence:

To colleagues:

“We’re never going to build a big business on $1 ARPU, let’s reconsider our business model.”

To investors:

“We doubled our ARPU by adding a new team’s plan to our product offering.”

At a party:

“Oh, man do you know where the bathroom is? I’ve really got to ARPU”

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