Enterprise SaaS companies use this metric to evaluate the value add of their service if the pricing is based upon the end-user count. The calculation is simply the ARR or MRR divided by the active end-user count. If a service is priced correctly, the price per user will indicate the actual cost of the solution for your customer. The greater the number of active end-users, the lower the customer’s cost per seat. Which means a higher degree of engagement and a higher value add. Take special care in defining an active user as one would when doing so for the DAU/MAU calculation.
Enterprise SaaS companies use this metric to evaluate the value add of their service if the pricing is based upon the end-user count. The calculation is simply the ARR or MRR divided by the active end-user count. If a service is priced correctly, the price per user will indicate the actual cost of the solution for your customer. The greater the number of active end-users, the lower the customer’s cost per seat. Which means a higher degree of engagement and a higher value add. Take special care in defining an active user as one would when doing so for the DAU/MAU calculation.
