Average Revenue earned per Paid Subscription per month.
Explanation of metric
- A trend line depicting the Revenue earned per paid Subscription during the period.
- Average Revenue Per Paid Subscription (ARPPS) is used interchangeably with Average Revenue Per Account (ARPA) and Average Revenue Per Unit (ARPU).
How it's measured
Average Revenue Per Paid Subscription (ARPPS ) = [(Total MRR) / (No. of Active Paid Subscriptions)]Note: Does not include Subscriptions recurring with 100% discount coupon.Reading
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Interpretation
- Increasing ARPPS directly increases the total MRR without having to add new Customers. Increasing your pricing once a year can help you to improve your ARPPS.
- Example: In a given period, 200 Customers are on Plan A ($10/month) and 300 Customers on Plan B ($20/month). Average Revenue Per Paid Subscription would be calculated as:
Total MRR = (200x10)+(300x20) = $8,000
No. of Active Paid Subscribers = (200+300) = 500
Average Revenue Per Paid Subscription = 8000/500 = $16.00