Introduction
Average revenue per user (ARPU) is a powerful metric to help determine the effectiveness of revenue generating activities on your site or platform. W
Overview
ARPU is a simple calculation which allows one to determine how much revenue is being generated per user. ARPU and its sibling, average revenue per paying user (ARPPU), are commonly used metrics in the Telco and gaming industries to identify revenue generating activities. This analysis can enable decisions on which activities to continue, enhance, or terminate. Additionally, it can help refine your target market when supplemented with demographic or behavioral data.
Analysis Benefits
- Compare cost of customer acquisition to actual revenue generated per customer
- Diagnostic of revenue generating activities
- Identify traits of profitable customer segments
- Identify profitable and unprofitable site activities
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Andrew Adamson
Senior Analytics Technical Consultant
Adobe Systems (Corporate Account)
San Jose CA
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