Average Revenue Per User/Customer/Account is a measure of the amount of money a single customer generates for your business. It is typically calculated by dividing the total revenue of a business in a given period by the average number of customers in the same period.
ARPU = Total revenue (per year/ per month)/ No. of customers in the same year/month
The total revenue used in this calculation should include payments from new customers, recurring revenues from existing subscriptions, up-sells, and cross-sells.
All customer-centric efforts—from Marketing to Sales to Onboarding to Support—need to know the value a single customer generates for the business. This makes it imperative for your business to closely track the ARPU at an annual or monthly level based on the nature of your subscription packages.