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Average revenue per user (ARPU)

Average revenue generated per user in measurement period (e.g. monthly, quarterly, yearly).

Details

Formula:

[revenue] / [number of users]


Unit: Money

Direction: Maximize

Unit: USD$

Time range: Per month

Benchmark Results


This KPI is most used for:
Cost Leadership

Comments

  1. Anand Rawat

    The formula for ARPU listed here is very basic and we would like some more details around it. For eg
    Revenue: Is it only revenue realised or is it revenue realised + unbilled revenue?
    Users: Is the the average number of users for a given period or number of users on a particular day/time.

  2. Marc Magon

    Average Revenue per User is calculated separately between pre-paid and post-paid (contractural/garuanteed vs up-front costs).

    For Post-Paid it is calculated as a usage of total allocated minutes/megs with their relavent costs per minute/second/megabyte – the total allocated costs.

    For Pre-Paid it is calculated as purchased vs used costs, and revenue is the difference minus the interconnect costs between each network.

    Revenue is taken as a literal in this metric, Total Costs – Total Used for each channel. Post and Pre-Paid is taken into account.

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