Customer LTV

Customer Lifetime Value shows the revenue per customer during the whole time dealing with him/her (during the customer lifetime cycle). A successful business model yields low CAC and high LTV.

Estimate your Customer Lifetime Value according the formula:

LTV = ARPU x ALT,
ARPU - average monthly recurring revenue per user,
ALT - average lifetime of a customer.

Average Lifetime of a Customer = 1 / Churn rate,  or

 LTV = ARPU / Churn rate 

Higher churn rate will give lower final customer lifetime value.

Divide customers by segments as they have different marketing metrics values and calculate LTV for each segment of customers.