Customer Lifetime Value (CLV)
Last updated
Last updated
What is it: An estimate of how much revenue you can expect to earn from a subscriber over the entire duration of their subscription.
Why it matters: CLV helps you understand the long-term value of each subscriber. It’s a key metric for evaluating pricing strategies, forecasting revenue, and deciding how much to invest in acquiring or retaining users.
How is it calculated: We multiply your average monthly revenue per active subscriber (ARPU) by how long, on average, subscribers stay subscribed (Retention Period).
Average Revenue per User (ARPU) is calculated as Total Revenue from Active Subscriptions divided by the Number of Active Subscriptions.
Average Retention Period is calculated as described .