Back to Glossary
"Paying User Ratio" (Paying User Ratio, PU or PUR) refers to the proportion of users who made purchases within the app during a specific period. This metric is very important for measuring the effectiveness of monetization, as it indicates what proportion of the entire user base of the app is actually generating revenue.
1. Identifying Revenue-Generating UsersBy understanding the Paying User Ratio, you can comprehend how many users are actually contributing to the revenue compared to free users.2. Evaluation of Monetization StrategyA high Paying User Ratio indicates that the app's monetization strategy is effective. Conversely, a low ratio may mean that there is a need to reconsider revenue generation opportunities.3. Insights into User BehaviorThe Paying User Ratio provides insights into what kind of purchasing behavior users have within the app. This allows for the identification of further opportunities to encourage purchases.4. Accuracy of Revenue ForecastingUsing the Paying User Ratio, it becomes possible to more accurately predict future revenue. This is particularly important for apps that rely on subscription models or in-app purchases as their main source of revenue.