Lifecycle
Unit: currency
Higher is better
About This Metric
Customer Lifetime Value is a key metric for understanding the long-term value of customer acquisition. Calculated using average revenue per customer and average customer tenure.
Formula
Average Monthly Revenue × Average Tenure (months)Data Sources
- diamond-customers
balancedateAddeddateCancelledsubscriptionAmountCustomer revenue and tenure data
Caveats & Limitations
- •Based on historical averages, not individual customer projections
- •Does not account for upsells or service changes over time
Derived From
This metric is calculated using the following metrics as inputs:
Average Tenure
The average length of time customers have been with the company.
Monthly Recurring Revenue
The total predictable revenue from active subscriptions per month.
Tags
#lifetime value
#revenue
#retention
Calculation Source
Real-time (Cosmos DB)