How Much Are Your Customers Really Worth?

Different types of businesses require different measures of success or growth — one man’s metric is another’s trash, you might say. This is especially true for revenue per user

Revenue per user is calculated by dividing total revenue by total users, and is used to understand growth and distinguish if some customers are more valuable than others. As business models evolve, it may be more accurate to calculate revenue per user strictly for your monthly active users as opposed to total users

The metric was historically used for service providers such as a telecommunications company. The main revenue stream would be a subscription, but value-add services and other revenue streams could be taken into consideration with revenue per user Read more…

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