Estimates the total revenue a customer is expected to generate over their entire relationship with the business.
Customer Lifetime Value (CLV) represents the total revenue you can expect from a single customer during their time as your customer. This metric helps businesses predict the long-term value of their customer relationships.
Formula: CLV = ARPU / CR
Where:
ARPU: Average Revenue per User, the average monthly subscription revenue generated per customer.
CR: Churn Rate, the percentage of customers who cancel their subscription during a specific period.