ARPU (Average Revenue Per User)

ARPU stands for Average Revenue Per User. It is a business and marketing metric used to understand how much revenue each customer, subscriber, or user generates within a specific timeframe. ARPU is commonly used by subscription businesses, SaaS companies, apps, telecom brands, streaming platforms, and other companies that rely on recurring or user-based revenue.

ARPU helps businesses evaluate customer value, pricing performance, retention strategies, and growth opportunities. A higher ARPU may suggest that customers are purchasing more, upgrading plans, or engaging with higher-value services. A lower ARPU may signal the need to improve pricing, strengthen customer experience, introduce premium offerings, or refine marketing strategies to attract more valuable users. For brands, ARPU provides insight into how effectively the business is turning its audience into sustainable revenue.