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What is Average Revenue Per Subscription (Overall) metric in RevenueStory?

The Average Revenue earned from all including free Subscriptions.

Explanation of metric

  • Point in time indicator of the Average Monthly Revenue generated from all Subscriptions (Free and paid).
  • Average Revenue Per Subscription (ARPS) is used interchangeably with Average Revenue Per Account (ARPA) and Average Revenue Per Unit (ARPU).

How it's measured

Average 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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