💰 ARPU - The Most Important Metric for SaaS Businesses
I've been working with more than a few SaaS companies right now and noticed a trend that only a few knew the ARPU (Average Revenue Per Users) metric and why it's essential to track. I've decided to post an article on it, and suggest some ways to improve it.
I'd love to hear from anyone who's using the ARPU metric in the business. What's your biggest takeaway?
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In case of a startup ARPU can be misleading. The main problem with ARPU is that it treats all customer-months the same.
Especially, if there are multiple pricing tiers and discounts, this can get even more misleading. I wrote a post few months back to explain some crucial metrics like MRR and LTV for startups: https://marketingmetrics.io/blog/mrr-ltv-for-saa-s
Thanks for your input!
The article I wrote suggests that ARPU shouldn't be used as a standalone metric (the same could be applied to your mentioned metrics like MRR or LTV).
In both scenarios you should have insights on your CAC or CCR, then it can achieve really great insights:)
Super!
"The article I wrote suggests that ARPU shouldn't be used as a standalone metric" - then don't write clickbait articles.
The article actually talks about how it should not be used as a standalone metric. Please read the article and then you will know what's up!
By the way, I guess the clickbait title actually works 😀
You missed the point. You come off as dishonest and not credible when you use a clickbait title. I will not be reading your content because I don't trust that you have my interests in mind. You just want clicks, which I will not give you.