How is Average Revenue Per Subscription metric calculated in RevenueStory?

Modified on: Mon, 30 Aug, 2021 at 2:34 PM

The Average Revenue earned from all including free Subscriptions.
Explanation of metric

A line indicator displaying 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

ARPPS is a key unit economics indicator. It is necessary to maximize this number by driving your Customers to move to a higher Plan. Increasing your pricing once a year helps you improve your ARPPS. Increasing ARPPS directly increases total MRR without having to add new Customers

M
Monica is the author of this solution article.

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