Customer Lifetime Value
Understand which segments impact customer lifetime value to help create new strategies to improve growth.
Customer lifetime value (LTV) is a key metric to creating a scalable, profitable business. However, not all customers have the same LTV, as it can vary widely by region, industry, product, channel, and even the seller. Understanding which segments impact LTV can help you create new strategies to improve growth, such as focusing on high-value segments or identifying areas of high churn to recalibrate.
First, we bring in revenue data for the different customer segments within your business SMB Revenue (Data), Mid-Market Revenue (Data), and Enterprise Revenue (Data).
Next, we calculate Opening Revenue, YTD New Revenue, YTD Churn, Customer Count, and Months of Data for each segment.
This allows us to then calculate Churn Rate by Segment (Union), Closing Revenue (Formula), Annualized Churn % (Formula), ARPA (Formula), Segmented Customer Lifetime (Formula), and Customer LTV (Formula) to create visualizations and easily compare these metrics across segments to identify the customer segments we should invest in.