The Growth Of Your Company

There are different metrics that can help a company grow and improve every day. The ARPU metric can be the ideal one to know in detail the growth that a company has had. Learn more about this metric and how it helps your brand. Index of contents What is ARPU? How is it calculated? Why is ARPU important? What is ARPU? The acronym ARPU refers to the Average Revenue Per User or in Spanish the Average Revenue per User . It is a key indicator (KPI) in the growth rate of all companies with subscriptions.

ARPU provides an indication of the effectiveness with which revenue generation potential is being exploited. This indicator is very useful to analyze growth patterns and compare the success of a Guatemala Phone Number with the competition. It measures the amount of money a business expects to generate from an individual customer. The ARPU metric allows you to have a clear idea, based on the data known to the company, of which products offer a lower ROI .

How Is It Calculate?

In addition, it facilitates decision making and will help adapt the business strategy according to each segment to increase commercial profitability . How is it calculated? The formula to calculate this metric is simple: Total Revenue / Unique Users . The number of revenues by subscriptions is into account , the average number of users during a specific period . It in aggregate or for different periods, channels or market segments: monthly, weekly, etc.

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It can be very useful to assess the quality of the company’s users. Therefore, To calculate total revenue, you must first determine the amount of goods or services offered during a specific time (one month). Companies that carry multiple products will want to see the total revenue for each product individually and then the totals. Therefore, This makes it possible to identify which products or services are the ones that are generating the most profit and the most income. Why is ARPU important?

Why Is Arpu Important?

The ARPU metric brings great benefits to companies. Among the main ones, the following: Compare the competition.  Therefore, Allows brands to compare themselves with their competitors or other vertical companies. Segmentation to analyze profitability. Therefore, Analyzing the ARPU metric by segment can reveal interesting insights when combined with other metrics. Therefore, In this way, the segments that generate profitability and, as well as the products. Best acquisition channels: Thanks to this metric,

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