What is Average Revenue per Paid Subscription by Customer Type metric?

Modified on: Mon, 30 Aug, 2021 at 10:15 AM

The Average Revenue earned per paid Subscription per month segmented by Customer Type.
Explanation of metric
  • A bar chart representing Average Revenue for each Customer Type(MRR > $5K USD) during a particular period. Average Revenue Per Paid Subscription (ARPPS) is used interchangeably with Average Revenue Per Account (ARPA) and Average Revenue Per Unit (ARPU).
  • This is available with RS premium only and to use this metric more efficiently, you have to configure a custom field at the Customer resource level in Chargebee and map it to the Sales Agent field to a Customer resource in RevenueStory. However, you can configure and select your own values in this custom field, it is recommended to configure meaningful values that are relevant for your business. Please connect with your Customer Success Manager or contact support

How it's measured

Average Revenue Per Paid Subscription by Customer Type = [(Total MRR)/ (Number of Paid Subscriptions per Customer Type)]


Reading

Up: Good

Interpretation
  • High ARPPS indicates high value derived by the Customers from your product or service. Observe this metric in conjunction with LTV for that Customer Type to understand the long-term value addition. Focus on ways to acquire such Customers since they are from the most productive segments.
  • Example: In a given period, 200 Customers are on Plan A ($10/month) and 300 Customers on Plan B ($20/month) belong to same Customer Type (< $5K USD processed)
    Total MRR = (200X10)+(300X20) = $8,000
    No. of Active Paid Subscribers = (200+300) = 500
    Average Revenue per Paid Subscription (Customer Type)= (8000/500) = $16.00

Click here to know about other metrics.

M
Monica is the author of this solution article.

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