Lifetime Value Calculation for Subscription Businesses

Photo by Austin Distel on Unsplash

It is so true that you cannot manage your business if you cannot measure it. One key metric for a subscription-based business is the Lifetime Value (LTV) or Customer Lifetime Value (CLV). In a nutshell, LTV means the total expected value generated over the lifetime of a customer. Let’s break this concept down further:

• LTV is an expectation, which means that it is…