The Average Revenue earned from all including free Subscriptions.
Explanation of metric
- Point in time indicator of the Average Monthly Revenue generated from all Subscriptions (Free and paid).
- Average Revenue Per Subscription (ARPS) is used interchangeably with Average Revenue Per Account (ARPA) and Average Revenue Per Unit (ARPU).
How it's measured
Average Revenue Per Subscription = [(Total MRR)/ (Total ACTIVE Subscriptions)]
Note:This metric is for ACTIVE Subscriptions only.
ARPS is a key indicator. It is necessary to maximize this number by driving Customers to move to a higher priced Plans. Increasing pricing once a year helps improve ARPS. Increasing ARPS directly increases Total MRR without having to add new Customers.
Example: In a given period, Average Revenue Per Subscription is calculated as:
Total MRR (Free & Paid) = $50,000
Number of Active Subscriptions = 1200
Average Revenue Per Subscription = (50,000/1200) = $41.66