ARPA - Sales Glossary - Upnify
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ARPA (Average Revenue Per Account)

The average revenue earned by a company based on customer subscriptions. It is generally calculated on a monthly basis, although it can be calculated based on weekly, quarterly and annual revenue.

The ARPA metric is widely used by telecommunications companies, software as a service (SAAS), social media companies and banks.

ARPA is a profitability metric that is not recognized by accounting standards such as GAAP or IFRS. However, companies in the relevant industries report the metric in their financial statements and spend a significant amount of time discussing their results.

This metric is extremely valuable in providing an overview of a company's profitability on a per account basis. In addition, it reveals which of the company's products or services generate the most and least revenue.

The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.