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4 results for “arpu”

Formulae (4)

CLV = \dfrac{ARPU \times Gross\ Margin}{Churn\ Rate}

The total profit expected from a customer over the whole relationship.

MRR = N \times ARPU

Monthly recurring revenue is the number of active subscribers times average revenue per user per month.

ARPU = \dfrac{TR}{N}

Average revenue per user divides total revenue over a period by the number of users.

CLV = \dfrac{ARPU \times m}{c}

Lifetime value estimates the gross profit a customer generates over their lifetime, using margin and churn.