Metric

ARPA

What is ARPA?
Filippo Burattini
1 minute

ARPA stands for Average Revenue Per Account, sometimes also called ARPU (Average Revenue Per User). This indicates the average value of your customer (usually low for B2C, higher for B2B and very high for Enterprise).
Tracking ARPA is a must to understand the unit economics of any business and see if it makes money.

How to improve the ARPA?

The most simple way is obviously to increase pricing, but this is also the hardest to do correctly. A simple way is to offer multiple plans (silver - gold- platinum) with incremental price points. Then instead of just relying on the fact that a new user will choose the correct plan for him, you should have a way of “scoring” your customers when they do something important in the app and qualify them for an upsell or cross-sell and prompt them to do so in-app.

Of course, with LlamaFi you get all of this and more out-of-the-box.

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