ARPPU is an essential metric if you want to track your app growth, understand your target audience, and, most importantly, increase revenue. ARPPU indicates Average Revenue per Paying User and calculates with the following formula:
ARPPU = (Total Revenue* generated by users in period) / # number of paying users
*In this formula, revenue could mean Sales or Proceeds. It's better to calculate ARPPU based on the Proceeds metric to analyze more accurate values.
However, it’s not as simple as it seems.
While analyzing ARPPU, keep in mind that you need to specify the timeline because subscribed users may have different subscriptions: users upgrade, reactivate and downgrade them.
Where to get insights while analyzing ARPPU for the Nth day:
In Apphud, we calculate ARPPU for cohorts and for each user personally, starting from the date of the first launch and then in 24-hour intervals. Thus, each user has their life cycle calculated from the first application launch.
In Apphud, we provide you with all the necessary data for the deepest revenue analysis.
Let’s take a look at the ARPPU chart in Apphud.
Country by IP
When we change the cohort period, we see that the list of the most profitable countries changes. It is crucial to evaluate your application data based on the app specifics, frequency of payments, etc. Looking at the data from different angles is critical because it expands your view and allows you to make the right decisions.
ARPPU analysis for the Nth day is a good example of how to use your data in the right way. Moreover, Apphud allows you to segment cohorts by day/week/month/quarter/year, paywall, platform, device, promo offer, product, gender, ad campaign, and more.
This is a case based on historical data but it is important that by breaking down the overall cohort in more detail we can find useful insights.
In Apphud, we understand how app revenue analytics is important for your business growth. That’s why data accuracy is our priority. Our platform provides the most accurate app revenue data to provide you with actionable insights. ARPPU for the Nth day analysis demonstrates how you can use Apphud's wide array of features to understand your audience, launch experiments, and test hypotheses. Sign up for Apphud for free and try it now!