Average revenue earned from a paid subscription over its lifetime, segmented by business type.
Explanation of metric
This is the average revenue generated from your paying customers over their subscription lifetime, for each business type.
How it's measured
LTV = ARPS * Paid Subscription Lifetime
A good way to understand customers from which type of plan is valuable to your business in the longer run. Focus on types with high LTV. Although keep your focus on the customer acquisition cost as well. If the LTV to CAC ratio is less than one, that's a red flag.
Click here to read more about other metrics.