|
Demonstrate feasibility A business is profitable when its income exceeds its expenses, that's clear. And ARPU is a metric that, precisely, manages to demonstrate this reality. When the values obtained are low, especially if we are talking about an SME, the life projection of the company is not encouraging . Since it is evident that sustainability over time is not possible. However, it is not the end. Since what it tells us is that it is necessary to increase the customer base to find an optimal profitability point.
Understanding the price-earnings relationship When a product provides Phone Number List a lot of value to users, without a doubt, it is an item for which they would be willing to pay more. But, if the ARPU proves to be low, one of the most common causes may be a disproportionate price-earnings ratio . This may be evidence to understand that customers do not agree with the cost-value relationship. Which allows us to establish new strategies to optimize your experience and match your expectations.
Understand the efficiency of Ventarketing Ventarketing, in summary, is the union between the Sales department and the Marketing department through a process of aligning objectives, KPIs and processes to generate greater efficiency. If the value propositions are improved , the ARPU should rise progressively. However, for this to happen you need to find customers who are willing to pay for your products. In that sense, the ARPU allows us to obtain a clear perspective of the strategies between Sales and Marketing and whether, ultimately, the two areas are working harmoniously to achieve the same goals. It's time to learn how to calculate it! How to calculate Average Revenue per User? Calculating ARPU is very simple, the most important thing to keep in mind is that the total number of customers will have a direct and proportional influence on revenue. So getting a low ARPU does not mean that the business is a failure.
|
|