What is a good ARPU?
ARPU benchmarks do not transfer across businesses, because the right figure for a consumer product and an enterprise platform differ by orders of magnitude. Context is everything.
The useful questions are whether ARPU is rising and whether it supports your acquisition economics. A rising ARPU means better pricing power or a richer customer mix.
Short answer
There is no universal good ARPU, because average revenue per user depends entirely on your market, pricing, and model. A consumer app may have an ARPU of a few dollars while enterprise ARPA runs into thousands. What matters is whether ARPU supports your CAC and whether it is trending up through better pricing or mix.
Key takeaways
- No universal figure; ARPU depends on market and model.
- Must support your CAC and payback math.
- A rising ARPU signals pricing power or richer mix.
- Judge by trend and against comparable peers.
Judging ARPU in context
ARPU must be high enough that, given your CAC, the unit economics work. A low ARPU demands a very low CAC (usually self-serve); a high ARPU can support a high-touch, higher-CAC sales motion. The two must be consistent.
Track the trend and segment it. A rising blended ARPU is usually good, but it can hide a declining segment. Segmenting by plan and cohort shows whether growth comes from bigger customers or better monetization.
How Ardovo handles it
Ardovo tracks ARPU by plan, cohort, and segment beside CAC and payback, so it is always judged in context. Rook flags when blended ARPU hides a declining segment or when ARPU is not keeping pace with rising CAC.
Frequently asked questions
What is a good ARPU?
There is no universal figure; ARPU depends on your market, pricing, and model. What matters is whether ARPU supports your CAC and whether it is trending up through better pricing or a richer customer mix.
How does ARPU relate to CAC?
They must be consistent. A low ARPU requires a very low CAC, typically a self-serve motion, while a high ARPU can support a higher-CAC, high-touch sales motion. ARPU must be high enough for the unit economics to work given your CAC.
How do I increase ARPU?
Raise prices, improve packaging and tiering, upsell and cross-sell, or shift acquisition toward larger customers. Expansion within accounts is often the most durable lever because it compounds through retention.