Average Revenue Per User: The Next Growth Lever

If you read “Conversion Rate and Average Order Value: The Hidden Levers of Growth”, you’ll know they both combine to boost revenue from the traffic you already have. 

Once those two numbers improve, your store earns more money without spending more on clicks.

The next question is simple, what happens after the first order?

That’s where ARPU, average revenue per user, comes in.

It’s the next lever for sustainable growth and we’re going to discuss it in detail in this post.

Why ARPU Matters After CR and AOV

Once your store improves conversion rate (CR) and average order value (AOV), you’ve already unlocked two major wins. 

More visitors are buying and they’re spending more when they do. That’s the first stage of healthy growth.

But those improvements only measure the value created in a single session. 

Someone arrives, buys or doesn’t buy and leaves. CR and AOV don’t tell you what happens next. 

They don’t track how a customer behaves over weeks or months or how much they spend across their relationship with you.

That’s where average revenue per user (ARPU) comes in. 

ARPU measures the revenue generated by each customer, not each order. 

Instead of looking at isolated transactions, you’re looking at the value of the person behind them.

Here’s why it matters:

Imagine two customers.

• One buys once for $100.
• Another buys three times for a total of $150.

AOV compresses everything into a single number. You don’t see that one customer is worth three times more over time, only that the average order is $62.50.

That tells you the average size of an order, but it doesn’t tell you which customers actually fuel the business.

ARPU changes the view because it assigns value to people, not transactions.

• User A is worth $100.
• User B is worth $150.

Across both customers, ARPU becomes $125.

That simple shift exposes loyalty, buying patterns and long term value that AOV hides.

The buyer who returns three times might be worth five times as much over a year. Without ARPU, that insight is invisible.

You can see this play out in everyday shopping habits.

• Someone who buys a phone might return for a case, charger or earbuds.
• Someone who buys protein powder often returns for refills.
• Someone who buys a wall planner might purchase stickers and marker pens.

This shift from order value to user value matters because it changes how you think about growth. 

You can start asking questions that CR and AOV alone can’t answer.

• Who buys more than once?
• Which products bring people back?
• What kind of offers increase repeat purchases?
• Which segments spend the most over time?

When you understand those answers, you stop relying on new traffic to survive. 

You start building a business that earns more from the customers who already like you enough to buy.

That’s the moment ARPU becomes the lever that moves everything else.

Why ARPU Matters for eCommerce

Acquiring a customer costs time and money. You pay for traffic, invest in content, build email sequences and optimize product pages.

By the time someone places their first order, you’ve already done the hard work. 

That makes the next question important, how much is a customer worth once they’re aware of you?

ARPU answers that. 

It measures what happens after the first sale and shows how much revenue each customer brings in over time. 

This matters because repeat customers behave very differently from first time buyers.

• They convert faster because they already trust you.
• They return with clearer intent because they know your products.
• They don’t require as much marketing because the relationship is already established.

You can see this pattern in almost any store.

If someone has bought running shoes from you and had a good experience, they’re more open to buying socks, compression sleeves or a waterproof kit bag. 

That second purchase takes far less convincing than the first as you’re not trying to win them over, you’re helping them complete a journey they already started.

If someone has bought skincare products, selling a matching serum or refill pack feels natural. 

Their first experience tells them whether your brand works for them. If it does, they trust the next recommendation.

If someone buys Astra, selling Spectra or ZipWP is far easier because they already understand the ecosystem, the quality and the support. 

The leap from “I’m trying this product” to “I want to expand with more tools from the same company” is shorter every time.

How To Calculate ARPU

ARPU = total revenue in a period ÷ total unique users in the same period.

Example: $400,000 revenue ÷ 2,000 users = $200 ARPU.

This number becomes even more valuable when paired with RPUV and traffic.

• RPUV = revenue per unique visitor.
• ARPU = revenue per buyer.
• Traffic = new fuel.

Together, they create a growth model that scales with clarity. 

• Traffic feeds the store. 
• CR and AOV increase initial value. 
• ARPU multiplies long term value.

How Sigmize Uncovers Your Highest Value Users

Sigmize acts as the engine that shows who your strongest users are and what they respond to.

You can:

• A/B test to see which offers convert.
• Track revenue per variant using experiments.
• Test messaging that encourages repeat purchases.
• Understand which segments bring in the highest ARPU over time.

When you know who buys more than once and why, your growth strategy becomes sharper and more predictable.

Suddenly, you’re using the same strategies the largest names in retail use.

How ARPU Compounds Revenue

Here’s the simple math:

• 1,000 users generate $200,000
• ARPU = $200

Improve cross-sells and repeat purchases and ARPU might rise to $300.

• Same users, same traffic, but now revenue increases by 50%.

This is what makes ARPU powerful. You no longer chase new traffic. You extract deeper value from the customers already choosing you.

Practical ARPU Boosters for eCommerce

ARPU grows when customers return more often or spend more across multiple purchases. 

The tactics below support both goals by offering products that match customer intent and extend the value of what they already bought.

Cross-Sells Such As “Frequently Bought Together”

Cross-sells work because they align with what someone is already trying to achieve. 

They’re not random addons, they’re natural companions to the main product.

• If someone buys a WordPress theme, a page builder seems logical.
• If someone buys a bike, pedals and a bottle cage make sense.
• If someone buys pet food, toys or treats feel relevant.

These suggestions boost ARPU by encouraging customers to build a more complete solution in one place. 

They also introduce products the customer might not have searched for themselves.

Post-Purchase Upsells

The moment after checkout is one of the clearest windows of buying intent as someone has already taken out their card and said yes. 

Post-purchase upsells use that moment to offer something that adds to the experience without disrupting the original order.

Because the purchase is already complete, there’s no risk of losing the sale. If accepted, ARPU rises immediately. If not, you have lost nothing.

Subscriptions and Refill Cycles

Subscriptions turn occasional revenue into predictable revenue. They also tend to increase ARPU because customers stay with your brand longer.

This fits naturally with many products.

Coffee, supplements, dog food, razors, skincare and household essentials all have repeat cycles. 

A subscription removes the need to remember and often rewards the customer with a lower price or bonus items.

For retailers, subscriptions reduce churn, smooth out revenue and lift ARPU steadily over time.

That’s why so many businesses try to use subscriptions wherever possible.

Bundle Offers on the Product Page

Bundles raise perceived value while giving the customer more for each purchase. They also create a sense of efficiency because everything arrives together.

Examples include a “starter kit,” “best value pack” or “buy two get one free.”

• A skincare bundle with cleanser, toner and moisturiser.
• A baking bundle with tins, mats and decorating tools.
• A dog-walking bundle with a harness, lead and travel water bottle.

Bundles grow ARPU by packaging customer needs into one purchase instead of waiting for them to return later.

Personalized Recommendations Through Email

Email is incredibly powerful when you send the right product to the right person at the right time.

• If someone bought running shoes, a followup email with socks or hydration gear feels considerate, not pushy.
• If someone bought Astra, an email suggesting Spectra or ZipWP feels aligned with their workflow.
• If someone buys a wooly hat, an email showing matching scarf and gloves feels like you’re looking out for the customer.

Why These Tactics Work

Each tactic increases ARPU by deepening the relationship. 

You’re not trying to squeeze more out of customers, you’re helping them get more value from what they already chose.

When customers return more often, buy related items or upgrade their original purchase, ARPU climbs steadily.

Unlike growth through traffic, this type of growth compounds because it builds on the trust you earned with every order.

How Sigmize Fits Into ARPU Optimization

The challenge with using ARPU is knowing which ideas work and which don’t. 

Sigmize gives you a controlled way to test your assumptions and measure how each change affects revenue.

Think of Sigmize as your evidence engine.

Instead of relying on gut feeling or copying what another store is doing, you can run focused experiments that reveal what your customers respond to.

Test Cross-Sell Blocks With Accuracy

Not all cross-sells perform equally. Sometimes a small, inexpensive addon lifts ARPU more than a premium bundle.

Other times, pairing products that solve a full problem works better than suggesting accessories.

Sigmize lets you test variations of the same idea.

• Version A might show a single related product.
• Version B might show a three-item “Complete the Set” group.
• Version C might highlight social proof, such as “Most people add this.”

By tracking ARPU across each variant, you learn which configuration leads to more revenue per user rather than just more clicks.

Compare Subscription Pitches With One-Time Purchases

Subscriptions increase ARPU because they turn occasional buyers into long term customers, but only if the pitch resonates. 

Sigmize gives you a way to experiment with different angles.

• One variant might highlight savings.
• Another might focus on convenience.
• A third might emphasise limited stock or refill reminders.

You can even test where the subscription option appears on the page, above the main button, below it or next to the pricing grid. 

Each placement affects behavior differently and Sigmize reveals which version leads to the highest ARPU over time.

Experiment With Bundle Configurations

Bundles often outperform single products because they add value and help customers feel prepared. 

But the layout, name and contents of a bundle influence how well it performs.

Sigmize makes it easy to test combinations.

• Starter pack versus essentials kit.
• Two-item bundle versus three-item bundle.
• Bundle discount expressed as a percentage versus a flat saving.

By measuring ARPU instead of just conversion rate, you see the wider impact. 

A variant with a slightly lower conversion rate might still win if it drives higher overall revenue per user.

Track ARPU Changes for Each Variant

Most tools stop at showing which version converted more. Sigmize goes further by tying revenue to behavior. 

You’re not just learning whether customers click or add something to the cart, you’re learning how much they spend and how that spending compares across variants.

If Variant B attracts fewer buyers but those buyers spend more over the next month, ARPU reveals that. 

It’s the metric that protects you from chasing short term wins that hurt long term growth.

Build a Clearer Picture of High Value Segments

ARPU isn’t the same for every customer. Some groups buy once and disappear. Others become multi-product customers who drive significant revenue. 

Sigmize helps you identify these patterns through variant-level revenue tracking.

• New users might respond well to bundles.
• Returning users might prefer single addons or refills.
• High intent users might choose upgrades without prompting.

Once you see these differences, your offers and emails become sharper and more personalized, which raises ARPU even further.

Why It Matters

ARPU grows through a series of small, compounding wins. 

Each test teaches you something about how your customers think, what they value and what prompts them to buy again. 

Sigmize provides the clarity that turns those insights into predictable growth.

With powerful A/B testing, anonymized session recordings and heatmaps, you’ll have concrete insights to help you make informed decisions.

Instead of guessing, you refine and measure. Instead of working in the dark, you work with data that shows exactly which ideas increase revenue per user. 

That’s how ARPU becomes more than a number. It becomes something you can influence with confidence.

ARPU Turns One-Time Buyers Into Multi-Product Customers

Here’s the progression that defines sustainable growth.

“Bought once” is good. “Bought repeatedly” is scalable.

In our world, someone might start with Astra.

• Then they add Spectra to help build pages.
• Then SureRank to handle SEO.
• Then LatePoint to manage appointment booking.
• Then OttoKit or SureDash to take the business further.

One $60 customer can become a $500 customer over time. ARPU is the metric that reveals and guides that journey.

Conclusion

ARPU is the point where growth stops depending on luck and starts becoming predictable. 

CR and AOV help you win the first sale, but ARPU shows how much value each customer creates long after checkout. 

It reveals who returns, who upgrades and who becomes a multi-product supporter of your brand.

When you raise ARPU, you’re not squeezing customers. You’re guiding them toward the products that genuinely fit their needs and strengthening their relationship with your store. 

Cross-sells, subscriptions, bundles and post-purchase offers all feel more natural when they’re based on real behaviour rather than assumptions.

Sigmize shows you what works, what doesn’t and which ideas lead to the highest revenue per user. 

With that insight, growth becomes a series of small, measurable steps that compound over time.

Traffic might start the journey, but ARPU multiplies the value of every customer who walks through the door.

Get deeper insights into your store’s performance with Sigmize!