Average Revenue Per Customer
Average Revenue Per Customer (ARPC) measures the average amount of revenue a company earns from each customer during a specific period, usually monthly or annually. This metric helps assess cost effectiveness by evaluating how much revenue each active customer contributes over the year.
NetSuite calculates the Average Revenue Per Customer using the following formula:
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Average Revenue Per Customer |
= |
Total Revenue / Number of Active Customers (12-month period). |
For example, Company A has $20,000,000 revenue for a year and the number of active customers (within the last 12 months) with any orders is 300. To calculate Average Revenue Per Customer:
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Average Revenue Per Customer |
= |
$20,000,000 / 300 |
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= |
$66,666.67 |