Average Revenue Per User (ARPU)<\/strong> is the amount an eCommerce retailer makes, on an average over a given time frame, from visitors that enter their online store. It’s calculated by dividing the total revenue by the total number of users, in that time period.\u00a0<\/span><\/p>\n ARPU is a common metric used to understand the lifetime value of customers. For marketers, it is increasingly important as costs of acquisition (CAC) of new customers have increased significantly over the last few years. The CAC numbers should be a fraction of the Average Revenue Per User for a given time period. For example, if retailers make a revenue of $ 800,000 in a quarter, and let\u2019s say they got 8,000 users in that time, their ARPU would be $100.\u00a0<\/span><\/p>\n It is important to note that ARPU is calculated with unique users and not visits. One user may have visited a store multiple times.\u00a0<\/span><\/p>\n Things that affect <\/span>Average Revenue Per Visitor (ARPU)<\/span><\/i> include the number of returning visitors,\u00a0 the average cost of an item, conversion rates and Average Order Value (AOV). Returning visitors spend <\/span>67%<\/span> more than new ones according to <\/span>CMO by Adobe<\/span><\/i>.<\/span><\/p>\nWhy is it important to measure ARPU?\u00a0<\/b><\/h2>\n
What factors affect ARPU?<\/b><\/h2>\n
What can retailers do to improve ARPU?<\/b><\/h2>\n