ARPU (average revenue per user)
DefinitionGrowth
ARPU (average revenue per user)
Average revenue per user: recurring revenue in a period divided by the number of paying customers. Some teams divide by all active users instead, so check the denominator before comparing numbers. The lever growth plans most often skip - tiers, add-ons and annual plans raise what each customer pays and move revenue without a single extra signup.
Evidence from the library
77% revenue vs 9% profitRevenue is the easy result, profit is the rare oneStatSize buying situations by revenue at stake, not just how often they occurPrinciple3% → 55%Paying for AI flipped from 3% of users to 55% in one yearStat21% vs 10.9%Challenger brands convert loyalty into profit more reliably than penetrationStat180 vs 100 indexWidening reach drives incremental sales that high-frequency targeting missesStat
Source
Marketing Definitions
standard SaaS and subscription practice
More from this source
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