Higher ARPU means fewer customers needed to hit the same MRR target. It also typically means better retention, longer LTV, and lower relative CAC.
1. Raise prices (most underused lever)
Most SaaS products are priced 30–50% below what customers would pay. A/B test a 15–20% price increase on new customers without touching existing plans. At typical SaaS churn rates, the revenue gain far exceeds the marginal churn.
2. Add a higher-tier plan
If your top plan is $99/month, add a $249/month tier with features that power users actually need. 15–25% of customers will upgrade — and your ARPU increases without acquiring new customers.
3. Usage-based expansion
Add metered pricing tiers: above X seats, X API calls, or X records per month, charge more. As customers grow, ARPU grows automatically.
4. Move upmarket
Closing 10 enterprise deals at $1k/month is often easier than acquiring 200 SMB customers at $50/month — and generates 5× the ARPU with better retention.
5. Eliminate the free plan (or charge for it)
If you have a generous free tier, converting 5–10% of free users to $15/month paid dramatically improves ARPU even while adding new customers.
Track your ARPU growth at the ARPU Calculator.