Docs
The Average Revenue earned from all including free Subscriptions.
Explanation of metric
How it's measured
Articles & FAQAverage Revenue Per Subscription = [(Total MRR)/ (Total ACTIVE Subscriptions)]
Note:This metric is for ACTIVE Subscriptions only.
Reading
Up: Good
Interpretation
ARPS is a key indicator. It is necessary to maximize this number by driving Customers to move to a higher priced Plans. Increasing pricing once a year helps improve ARPS. Increasing ARPS directly increases Total MRR without having to add new Customers.
Example: In a given period, Average Revenue Per Subscription is calculated as:
Total MRR (Free & Paid) = $50,000
Number of Active Subscriptions = 1200
Average Revenue Per Subscription = (50,000/1200) = $41.66
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