ARPU metric links revenue and product value, although at first glance this may seem strange, since only the financial side of the issue is discussed.
The point is that ARPU reflects the willingness of users to pay for a product. Let's imagine that a company has 3 paid tariff plans and a free trial period. The monthly payment for each of the paid options is $15, $20 and $30 respectively. Having calculated ARPU and received a value of $23, we can conclude that most users who make a purchase prefer more expensive tariffs.
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If a large portion of customers choose the most expensive plan, it may indicate that they are willing to pay even more. If the company's product does not offer them this opportunity, then you risk losing profits.
An increased ARPU indicates venezuela email list that users value your product highly. If ARPU reaches the level of the average tariff cost, you can consider increasing prices.
If the indicator is closer to the price of a cheap tariff, this may be a signal to reconsider the marketing strategy.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
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I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
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Methods to Increase ARPU in E-Commerce
To improve ARPU and ARPPU indicators, standard marketing methods are used that contribute to:
attracting the user's attention to commercial offers and increasing their motivation to make a purchase, which helps advance the sales funnel;
increasing the average bill by holding promotions, offering promo codes, product recommendations and other marketing techniques carried out on the store’s website;
using lead forms with magnets, where the client leaves their contact information in exchange for a gift (demo version, test access to a tariff plan for a certain period, etc.).
The choice of specific tools is based on the analysis of ARPU and ARPPU, studying the dynamics of the average check, the volume of abandoned baskets, the cost of attracting and retaining customers, as well as other metrics. For example, with a low average check, product recommendation blocks can be used, and with abandoned baskets - remarketing, where online store advertising with reminders will follow the user on other web resources.
Let's list the most universal methods that will help increase the ARPU value without the need for global changes and large investments.