Average Revenue Per User (ARPU)
ARPU measures the average revenue generated per user (or per account) in a given period. It's the primary lever for improving LTV without reducing churn. For B2B SaaS, ARPU is often calculated per account (ARPA) rather than per individual user. Rising ARPU in a stable customer base signals a healthy upsell motion.
Note: For B2B, use ARPA (per account). Calculate separately for each pricing tier or segment to avoid mixing signals.
Growing ARPU over time while retaining existing customers
Declining ARPU with flat MAU means revenue is concentrating in fewer accounts
Benchmarks by segment
How to improve ARPU
Introduce higher-tier pricing plans with features that justify the premium for power users
Add usage-based pricing for features that scale with customer growth
Build a clear upsell path from free/starter tiers to paid — in-product prompts at moments of value
Increase seat expansion within accounts by improving per-user value (not just per-account value)
Common measurement mistakes
Tools for measuring ARPU
Best-in-class behavioral analytics with powerful event segmentation, funnel analysis, and retention charts that go far deeper than Google Analytics
Best-in-class event-based analytics with intuitive funnel, retention, and flow reports that surface actionable insights quickly
All-in-one product analytics platform combining analytics, session replay, feature flags, A/B testing, surveys, and a data warehouse — replacing multiple point solutions
Autocapture eliminates the need for manual event instrumentation — every click, pageview, and form interaction is tracked automatically from day one
All-in-one platform combining feature flags, A/B testing, product analytics, session replay, and web analytics — eliminating the need for separate tools
Best-in-class no-code editor for creating in-app walkthroughs, tooltips, and interactive guides without developer involvement
Frequently Asked Questions
For B2B products where multiple users share one account (and billing), ARPA (per account) is the more meaningful metric. ARPU (per user) is better for consumer products or B2B tools where each user pays individually.