Skip to content

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?

Questions and answers

What is ARPU?

Average Revenue Per User — the average revenue from one customer or user for a period, most often a month.

How is ARPU different from average order value?

Average order value is the amount of one purchase, ARPU is all revenue from a customer in a period. ARPU = average order value × purchases per customer.

How do you increase ARPU?

Sell higher plans and add-on services, bring customers back to buy more often and develop bundles.