ARPU
The ARPU (Average Revenue Per User) chart is a valuable metric for understanding how much revenue your app generates on average per user. It helps you assess the financial contribution of each user, providing insight into the overall efficiency of your subscription and pricing models.
Calculation
ARPU is calculated by dividing the total revenue generated by your app in a given period by the number of active users during that period. It includes:
- Total Revenue: The total income generated from subscriptions, in-app purchases, and any other sources of revenue.
- Active Users: The number of users who interacted with the app within the selected period.
The ARPU calculation does not include users who have been inactive during the period. Additionally, ARPU is calculated before accounting for any store fees or taxes.
Example: How ARPU is calculated
If your app had the following in a given month:
- Total revenue of $5,000
- 500 active users
The ARPU would be calculated as:
ARPU = $5,000 ÷ 500 = $10
Usage
ARPU is an essential metric for understanding the revenue contribution of individual users, giving you a clear indication of how effectively you are monetizing your user base.
To maximize ARPU in Botsi, segment your users by subscription plan or in-app purchase behavior. This allows you to identify high-value users, optimize pricing strategies, and adjust your product offerings to increase revenue per user. By monitoring ARPU trends, you can continuously refine your approach to improving user engagement and profitability.