Revenue metrics connect user behavior with the financial performance of a product. They make it possible to see whether usage translates into sustainable income.
Important measures include:
- Monthly recurring revenue (MRR): the predictable monthly income from subscriptions.
- Annual recurring revenue (ARR): the same view across a year, smoothing seasonal fluctuations.
- Average revenue per user (ARPU): shows how much each customer contributes on average, often used to segment high- and low-value users.
These indicators help product managers evaluate pricing models, identify profitable segments, and track the impact of retention and engagement on income. They also clarify the balance between acquisition costs and customer lifetime value, which is crucial for planning growth strategies.
By tying revenue directly to user activity, teams can see whether the product is not only being used but also supporting the business sustainably.
Pro Tip: Watch both revenue totals and per-user averages. Growth is strongest when income per user rises alongside overall adoption.
