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?

Aliases: 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.

Articles on Revenue per User

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.

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