E-commerce Glossary

ARPU (Average Revenue Per User)

Average revenue generated per user over a given period.

ARPU measures the average value of each customer over a chosen period (month, quarter, year). Formula: ARPU = Total Revenue / Number of Active Customers. Unlike AOV, which looks at individual orders, ARPU includes repeat purchases. An ARPU of $120/quarter means each customer generates an average of $120. Tracking ARPU reveals whether your customers are spending more or less over time.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition CLV / LTV (Customer Lifetime Value)Total value a customer generates over their entire relationship.See definition

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