Or what is the same

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Let's go to the formula: ARPU  revenue  number of users To do it correctly, it is important not to consider those that are in free trial periods or with temporary promotions. Now, do you remember that we promised to contextualize the differences between ARPU and LTV? Well, the time has come! What is the difference between ARPU and LTV? Lines ago we explained that LTV or Lifetime Value is a metric that represents the customer's lifetime value , or the value of the time that the company obtains from its consumers while they are within their sales cycles.


Obviously it is a value that is reflected in the long term, that is, it is a Phone Number List marketing principle that takes into consideration the value of the relationship with the customer as long as said relationship with the company exists. Its most fundamental difference with ARPU is that LTV seeks to contextualize the benefit that the company obtains from other transactions and interactions with a customer on average. While the ARPU shows the average revenue per customer. However, both concepts are not opposites , since many times both are used in the same equations to provide some other metrics.





For example, if we multiply the ARPU by the average life of a customer (1 Churn rate ), we can obtain the LTV . Let's do a practical exercise: If we assume that Churn is 10% per year, we can say that a client lasts on average 10 years (110). Therefore, if the ARPU is about $2,000 Mexican pesos per month and the average duration of a customer is 120 months, the LTV will be $2,400,000 Mexican pesos in 10 years. Or what is the same:  (1Churn) Do you want to know more about ARPU and how to optimize it to levels that allow sustainability? Follow our advice! How to improve ARPU? Below, some of the indicators that you should follow to improve your ARPU.