Annual Recurring Revenue per Customer (ARR) is the amount of revenue that a customer brings in over the course of a year.
ARR is calculated by taking the total revenue generated from a customer over the course of a year and dividing it by the number of months in a year.
ARR is a great metric to use to determine the value of your customers. It's also a great way to determine how much you should be spending on customer acquisition.
For example, if you have a customer that generates $1,000 in revenue over the course of a year, you should be spending $333.33 on customer acquisition.
For a more detailed explanation of ARR, check out this blog post .