What is the Average Revenue per Trial Metric?
The Average Revenue per Trial (ARPT) metric represents the average revenue generated from each new free trial started on your platform, based on the overall revenue generated by any cohort of new free trials. This metric provides insight into the efficiency of your trial programs in generating revenue and the value of each initiated free trial.
You can find it in the Cleeng Dashboard under Analytics > Trial Value & Acquisition.
How is it Calculated?
The formula for calculating Average Revenue per Trial is:
Average Revenue per Trial = (Revenue from converted trials) / (Total free trials started)
- Revenue from converted trials: The total transaction value generated over time by a cohort of users defined by their trial start date(s).
- Total free trials started: The total number of free trials initiated within the same specified period.
Trial Value & Acquisition Dashboard
What is the Trial Value & Acquisition Dashboard?
The Trial Value & Acquisition Dashboard combines two key trial metrics into a single view: Trials Started and Average Revenue per Trial (ARPT). It helps you understand both the volume of new trials and the revenue those trials generate over time.
Dashboard components:
- Combo Chart Visualization: Displays Trials Started as a bar chart and Average Revenue per Trial as a line chart. This format lets you see whether high-volume periods also bring in high-value users.
- Data Table: Lists the trial start date, Trials Started, and Average Revenue per Trial in the same rows, sorted by date. Data can be exported for further analysis.
You can filter the dashboard by Subscription Acquisition Channel, Offer Title, and Customer Country, in addition to the trial start date range and timeframe selection.
Metrics on this dashboard:
- Trials Started: the total number of free trial subscriptions initiated within the selected date range.
- Average Revenue per Trial (ARPT): the average revenue generated from each new free trial, calculated as total revenue from converted trials divided by total trials started in the same period.
How are Trials Started and Average Revenue per Trial different?
Trials Started is a volume metric. It counts how many free trials began in a given period and tells you about reach and acquisition momentum.
Average Revenue per Trial is a value metric. It tells you how much revenue each trial cohort eventually generates, reflecting trial quality, conversion effectiveness, and subscriber retention after conversion.
Together, they answer two distinct questions: "How many people are trying our product?" and "How much is each trial cohort worth?"
How to Use the Average Revenue per Trial Metric in a Subscription Business
The Average Revenue per Trial metric is crucial for evaluating the effectiveness and profitability of your free trial strategies. You can use it to:
- Assess Trial Program Performance: Monitor Average Revenue per Trial to understand how well your trials convert into revenue-generating subscribers. A higher Average Revenue per Trial indicates more effective trial programs.
- Optimize Trial Offers: Analyze how different trial lengths, content access, or onboarding processes impact Average Revenue per Trial. This allows you to refine your trial offers to maximize revenue.
- Evaluate Marketing Campaigns: Measure the Average Revenue per Trial generated from trials originating from specific marketing campaigns. This helps identify the most effective channels for acquiring high-value subscribers.
- Forecast Revenue: Use Average Revenue per Trial to forecast potential revenue from future trial initiatives. By understanding the average revenue generated per trial, you can estimate the financial impact of planned campaigns.
- Compare Trial Cohorts: Track Average Revenue per Trial for different trial cohorts to identify trends and patterns in conversion rates and revenue generation. Changes in Average Revenue per Trial can highlight the impact of product updates, marketing changes, or seasonal variations.
FAQs
What date is shown in the Trial Value & Acquisition dashboard?
The date when the trial started. Both metrics are grouped by trial start date.
Why is my Average Revenue per Trial showing 0?
The trials from that period haven't converted to a paid subscription yet, or the converted subscriptions haven't generated any revenue. Check the Trial Conversions dashboard and the Transactions Report in for more detail.
What revenue is counted in Average Revenue per Trial (ARPT)?
All revenue from subscriptions that started as a trial on a specific date. This means the value will grow over time as those subscriptions renew. Trials started 12 months ago will typically show a much higher ARPT than trials from the current month. Revenue is counted at the subscription level, not the customer level.
Why do older trial cohorts have higher ARPT than recent ones?
This is expected. Older cohorts have had more time to generate revenue. A trial started a year ago has had 12 months of potential payments on a monthly offer, while a trial started this month may not have converted yet.
Can I compare trial acquisition volume against trial quality?
Yes - that's the purpose of the combo chart. If Trials Started spikes but ARPT stays flat or drops, it may indicate lower-quality acquisition. If volume is steady but ARPT is climbing, your trial cohorts are retaining and paying better over time.