What is Average Revenue Per Subscription (Overall) metric in RevenueStory?

Modified on: Mon, 30 Aug, 2021 at 12:14 PM

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.
Reading

Up: Good

Interpretation
  • 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


Click here to know about other metrics.





M
Monica is the author of this solution article.

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