Question

Topic: Strategy

Arpu Types

Posted by Anonymous on 10/2/2012 at 1:51 PM ET 25 Points
I know some insights about ARPU (Average Revenue Per User) but I found on the Internet in different analysis that there are two types of ARPU (Outgoing and Incoming ARPU) I will appreciate it if you can give me more insights about each one of them and what does payback on outgoing or incoming ARPU mean so that I can be able to understand the following:

The loyalty program targeted a platinum customers segment in its initial phase. The program achieved 15% decrease in Churn rate within the high value segment, through 5.2% avg. payback on outgoing ARPU.
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RESPONSES

  • Posted by Gary Bloomer on 10/2/2012 at 3:09 PM Accepted
    ARPU applies most commonly to the telecommunications market. Which category are you reviewing?
  • Posted on 10/2/2012 at 4:38 PM Author
    Thank you Mr. Bloomer for your reply.

    The telecom category is the category that I am reviewing.
  • Posted on 10/2/2012 at 6:31 PM Author
    Thank you for your beneficial answer.

    There is a point in your answer on which I will appreciate more clarifications.

    The point:

    (this revenue is either pay to the telecom operator via interconnection fees ( calling party pays or CPP) by the customer on the incoming minutes ( Mobile party pays))
    SMS and data is always paid by the customer or outgoing revenue.

    I would also appreciate it if you can let me know how payback on outgoing ARPU can decrease the Churn rate. Appreciate examples.

    Thank you very much in advance for your support.
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