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...
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About SQL Habit
Hi, it’s Anatoli, the author of SQL Habit.
SQL Habit is a course (or, as some of the students say, “business simulator”). It’s based on a story of a fictional startup called Bindle. You’ll play a role of their Data Analyst and solve real-life challenges from Business, Marketing, and Product Management.
SQL Habit course is made of bite-sized lessons (you’re looking at one atm) and exercises. They always have a real-life setting and detailed explanations. You can immediately apply everything you’ve learned at work.