Glossary > ARPC

ARPC

What is ARPC?

ARPC is an acronym for your “average revenue per customer.” This measures the average amount of revenue your store receives per customer in a given period of time. Generally, this is measured monthly or yearly. Knowing your ARPC can help you make the right decisions for your business. For example, if you look at the monthly or quarterly numbers for 3 products that you’ve focused your marketing and sales efforts on, and you have one product that has an obviously high ARPC, you now have a clear idea of which efforts to lean more heavily on for your next sales cycle. This allows you to push growth with your biggest revenue drivers.

How to Calculate ARPC

Your Average Revenue Per Customer (ARPC) = Total Revenue / Customer Count. You can measure this for your store’s sales as a whole, but it is important to remember that some of the most informative data can come from ARPC segmentation data. Segmenting by product types or customer attributes can help you drill down to more specific average revenue per customer data, which informs more useful actions. You can also chop up your data by time period. For example, comparing the change in ARPC over time by taking a product’s quarterly revenue compared to yearly revenue can provide a wealth of useful information.

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