Having said all this, it is time to talk about those factors that ARPU manages to provide to a company and that are really valuable. What is ARPU Business Email List used for? This KPI is capable of giving us a deep perspective of the trends and behaviors of users, however, this is not all. Below are some of the elements that ARPU allows access to. Provoke Business Email List growth in Monthly Recurring Revenue and Lifetime Value The increase in Business Email List the average revenue per customer has a direct impact on the measurements of the monthly recurring revenue.
since if customers have to pay more to receive the same products or services for a while, the MRR will increase. proportionally. In Business Email List addition, the money contributed by the company's consumers each month Business Email List enters as a determining variable in the Lifetime Value or LTV , so that the ARPU has a long-term influence on the life cycle Business Email List of the users, but with differences between the concepts that we will explain later. Demonstrate feasibility A business is profitable when its income exceeds its expenses, that is clear. And ARPU is a Business Email List metric that precisely demonstrates this reality.
When the values obtained are low, especially if we are talking about an SME, the life expectancy of the company is not encouraging . Since it is Business Email List evident that sustainability over time is not possible. However, it is not the end. Since what it tells us is that it is necessary to increase the customer base to find an optimal point of Business Email List profitability. Understand the price-earnings ratio When a product brings a lot of value to users, without a doubt, it is an item for which they would be willing to pay more. But, if ARPU proves to Business Email List below, one of the most common causes may be a disproportionate price-earnings ratio .