Average revenue earned from a paid subscription over its lifetime, segmented by customer type.
Explanation of metric
This is the average revenue your paying customer would generate, over their subscription lifetime, for each customer type.
How it's measured
LTV = ARPPS * Paid Subscription LifetimeReading
Up: Good
Interpretation
A good way to understand customers from which type of customers are valuable to your business in the longer run. Focus on types with high LTV. Also, keep your focus on the customer acquisition cost. If the LTV to CAC ratio is less than one, that's a red flag.
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