What is ARPU?
ARPU stands for "Average Revenue Per User," and refers to the average amount of revenue per user
. Recently, especially in the smartphone and other game-related companies, it has become common to see them use ARPU as a way to measure their business performance.
ARPA is an indicator austria cell phone number list of sales per account, while ARPU
refers to the average sales per user. Let's take smartphones as an example. Recently, it is common for one user to use multiple smartphone devices, and in this case the ARPA and ARPU figures are different.
Even if one person uses four devices, since there is only one person actually using them, the ARPU index is calculated as 1. However, ARPA calculated per device (account) is calculated as 4.
In this way, the difference between ARPA and ARPU is that the figures differ depending on whether you calculate based on one user or one account.
What is ARPPU?
ARPPU is an indicator that shows the average revenue per paying user, and is an abbreviation of the words "Average Revenue Per paid User." ARPPU is limited to paying users only, so by using it you can calculate the exact amount of sales.
What is the difference between ARPA and ARPPU?
The difference is that ARPA is an indicator that covers all users, while ARPPU is limited to paying users only. If you have 500,000 users, your ARPA will be an indicator of the number of users, which is 500,000. On the other hand, ARPPU is an indicator that is limited to those users who pay for the service.
Therefore, in order to calculate ARPPU, the number of paying users must be detected from the total number of users. The number of paying users is then recognized as an indicator of ARPPU. The difference
between ARPA and ARPPU is whether it targets all users or only paying users.
How to calculate ARPA, ARPU, and ARPPU
By using ARPA, you can efficiently measure your company's sales. So how is it actually calculated when you use it? From here, we will explain in detail the differences in the calculation methods for ARPA, ARPU, and ARPPU.
ARPA = Sales / Number of accounts
Since ARPA is an indicator that represents the average sales per account, an accurate indicator can be calculated by dividing total sales by the number of accounts.
An example of ARPA calculation is shown below for your reference.
Example: If you have sales of 70 million yen and 70,000 accounts,
Calculation formula: 70,000,000÷70000=1,000
This formula is valid, and ARPA can be measured as 1,000 yen.
ARPU = Sales / Number of users
ARPU is an indicator that represents the average sales amount per user, so an accurate indicator can be calculated by dividing the total sales by the number of users. Below is an example of how to calculate ARPU for your reference.
Example: If you have sales of 50 million yen and 50,000 users
Calculation formula: 50,000,000÷50,000=1,000
This formula is valid, and the ARPU can be calculated as 1,000 yen.
ARPPU = Sales / Number of paying users
ARPPU is an indicator that represents the average revenue per paying user, so it is calculated by dividing the total revenue by the number of paying users. Below is an example of how to calculate ARPPU for your reference.
Example: If you have sales of 80 million yen and 40,000 paying users
・Calculation formula: 80,000,000÷40,000=2,000
This formula works, and the ARPPU can be calculated as 2,000 yen.
How to Maximize Sales with ARPA
Measuring ARPA and actively using it in your business will improve your company's sales. So how can you use the measured ARPA to get the best results?
From here on, we will introduce how to use ARPA to maximize your sales.
Encourage repeat purchases of your services
It is also important to measure ARPA and encourage repurchasing of services in order to maximize sales. In particular, you can achieve good results by implementing campaigns and events that are beneficial to users, or by offering special benefits. Also, instead of a one-off approach, you can achieve high-effect ARPA by conducting multiple approaches.