We got familiar with Unit Economics framework to analyze business profitability from the unit perspective – user or a customer in the case of Bindle.
ARPU and CPA
Average Revenue Per User – average revenue each user (all our userbase, free and paying users) brings us. This value is usually compared with Cost Per Acquisition – how much did we pay to acquire a user.
For business to make money we need ARPU higher than CPA.
Here’s a query for ARPU:
SELECT SUM(amount) / COUNT(DISTINCT(u.id)) AS ARPU FROM users u LEFT JOIN purchases p ON...