Product metrics and goals
Average revenue per user (ARPU)
Also called ARPU, ARPA, Average revenue per account, ARPPU
Revenue divided by the number of users or accounts: what each one is worth to the business in a period, on average.
How it's worked out
Revenue in the period ÷ users or accounts in the period
B2B products usually count per account (ARPA); consumer products per user (ARPU), or per paying user (ARPPU) when most users are free.
Track it alongside the number of users. ARPU can rise simply because low-paying users left.
In practice
$130,500 of MRR across 1,272 accounts is about $103 per account.
Common mistake
Celebrating a rising ARPU without checking whether it rose because cheaper customers churned.