Analytics Recipe Cookbook - Summaries

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  • 1.  Average Revenue Per User

    Posted 11-26-2016 07:37 PM

    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

    DAA members, go here to view full recipe.

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    Andrew Adamson
    Senior Analytics Technical Consultant
    Adobe Systems (Corporate Account)
    San Jose CA
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