Customer Lifetime Value (CLV)

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 here.