ARPU: revenue per customer, formula and example
ARPU is the average revenue per active customer for a period; Average Order Value (AOV) is the average revenue from a single order. Both metrics reflect monetization: ARPU — how much a customer brings in over a period, AOV — how much they spend at a time.
What the Metrics Measure
ARPU reflects the monetization of the customer base (month/quarter), AOV — the "depth" of a purchase. For accuracy, use net revenue (excluding VAT, after discounts/returns) and consistent rules for customer activity.
Calculation
- ARPU (monthly) = Revenue for the period / Number of active customers in the period
- ARPU (subscriptions) = MRR / Number of active subscribers
- AOV = Revenue (net) / Number of successful orders
- Additionally: Units per order = Σunits / Number of orders; Net vs. Gross after/before fees
Define whether shipping/tips, coupons, partial returns, and marketplace fees are included.
Calculation example
A service earned 900,000 in a month from 1,500 active customers. ARPU = 900,000 / 1,500 = 600 per customer per month. If each customer makes 2 purchases a month on average, the average order value is 300 and ARPU is twice that.
Data Sources
ERP/1C, CRM and billing, store CMS/marketplaces, payment providers, product analytics (for MAU/DAU in services); consistent reference lists of customers, SKUs, channels, and order statuses.
Interpretation
- AOV growth = bundles, upselling/cross-selling, free shipping thresholds, mix changes
- ARPU growth = subscriptions/packages, retention, price increases, more frequent purchases
- Evaluate together with gross margin and discount share
Useful Breakdowns
- Channels (online/offline/marketplaces), first-purchase cohorts
- Categories/SKUs, loyalty segments, new vs. returning
- Regions/points of sale/managers
- Traffic sources and campaigns
Dashboard Visualizations
- ARPU and AOV trends with year-over-year comparison
- Order value distribution (histogram/boxplot) and the contribution of units per order
- AOV decomposition: price, mix, discounts
- A map of ARPU by channel/cohort
- Plan vs. actual and target thresholds
How to Set Targets
Set ARPU/AOV targets by channel and category, free shipping thresholds, and a policy for bundles and personalized recommendations; for subscriptions — pricing plans and upgrades. Update the rolling forecast taking seasonality and promotions into account.
Common Mistakes
- Including VAT/shipping in revenue
- Mixing in canceled/partially returned orders
- A vague definition of an "active customer"
- Comparing different time windows and currencies without conversion
- Double-counting coupons/fees
Questions for Discussion
- What will deliver a greater AOV uplift: a shipping threshold or bundles?
- Which cohorts/channels have the highest ARPU, and why?
- Which categories lower AOV, and how can this be fixed?
- Are promotions "eating" margin faster than order value grows?