What does "Revenue per User" mean?
Definition of Revenue per User in the context of A/B testing (online controlled experiments).
What is Revenue per User?
Alias: RPU
Revenue per user (RPU) is simply the total revenue generated from a given user: RPU = Revenuen where n is the ID of the user in question. It is a simple metric that rarely enters A/B testing calculations on its own. What is usually used is its aggregate metric: average revenue per user (ARPU) but often in reports or articles on the topic say RPU when it is in fact discussing or displaying ARPU.
The distinction between the two is important since sometimes it causes confusion among statisticians who would indeed need to threat the two quite differently (with the Central Limit Theorem applying for ARPU and not for RPU).
Revenue per user is a non-binomial metric.
Like this glossary entry? For an in-depth and comprehensive reading on A/B testing stats, check out the book "Statistical Methods in Online A/B Testing" by the author of this glossary, Georgi Georgiev.
Articles on Revenue per User
Statistical Significance for Non-Binomial Metrics – Revenue per User, AOV, etc.
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About the author
Georgi has over twenty years of experience in online marketing, web analytics, statistics, and design of business experiments.
Author of the book "Statistical Methods in Online A/B Testing", white papers on statistical analysis of A/B tests, and a speaker, he has been distinguished as a winner in the Data & Analytics category of the 2024 Experimentation Thought Leadership Awards.
Statistical Methods in Online A/B Testing
Take your A/B testing program to the next level with the most comprehensive book on user testing statistics in e-commerce.
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