This metric is also known as ARPU and ARPC.
The Average Revenue Per Account (ARPA) chart reports the average MRR of active customers.
How is it calculated?
The SUM of all your customers’ MRR / number of customers
If a customer has multiple subscriptions, these are combined and counted as one customer before the ARPA is calculated.
You have 5 customers, all paying different amounts per month.
- Customers 1 and 2 are paying $1 per month.
- Customer 3 is paying $3 per month.
- Customers 4 and 5 are paying $5 per month.
$15 (total MRR) / 5 (number of customers) = $3 ARPA
In this scenario, the Average Revenue Per Account is $3 per month.
What analysis can be gained?
This graph is useful if you want to see the average monthly recurring revenue contributed by your customers each month. Get more insights by using segmentation. For example, you could compare the ARPA for customers acquired through different marketing channels.
Check out our blog to learn more about ARPU.