What is Lifetime Value of a Paid Subscription by Business Type metric in RevenueStory?

Modified on: Wed, 1 Sep, 2021 at 5:27 PM

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


Reading

Up: Good

Interpretation

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. 

M
Monica is the author of this solution article.

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