ARPPU
The ARPPU (Average Revenue Per Paying User) chart is a critical metric for understanding how much revenue you generate on average from users who are paying for your app. Unlike ARPU, which considers all users, ARPPU focuses only on paying users, providing insights into how well you are monetizing your paying audience.
Calculation
ARPPU is calculated by dividing the total revenue from paying users in a given period by the number of paying users during that period. It includes:
- Revenue from Paying Users: The total income generated from users who made a payment, including subscriptions and in-app purchases.
- Paying Users: The number of users who made at least one payment within the selected period.
The ARPPU calculation does not include free or inactive users. Additionally, ARPPU is calculated before accounting for any store fees or taxes.
Example: How ARPPU is calculated
If your app had the following in a given month:
- Total revenue from paying users of $4,000
- 200 paying users
The ARPPU would be calculated as:
ARPPU = $4,000 ÷ 200 = $20
Usage
ARPPU is a valuable metric for understanding the revenue contribution from your paying users, helping you assess the effectiveness of your monetization strategy.
To maximize ARPPU in Botsi, segment your paying users by their behavior, such as subscription plan or in-app purchase activity. This helps you identify high-value users and optimize your pricing, offers, and product features to increase revenue per paying user. Monitoring ARPPU trends allows you to refine your approach to monetization, ensuring continued growth and profitability.