ACV / ARPU / ARPA

Average Contract Value, Average Revenue Per User, and Average Revenue Per Account.

ACV measures the annual value of a customer contract; ARPU/ARPA the average revenue per user or account. These help size revenue potential, segment customers and model growth. Rising ARPU through upsells signals expansion potential.

Examples

A SaaS firm has a £6k ACV and grows ARPU via add-ons. — Enterprise deals raise blended ACV.

How it relates to The Startup Foundry

Revenue-per-customer metrics feed the Business Opportunity and Scalability pillars.

Related terms

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