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Customer Lifetime Revenue Definition 

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What is Customer Lifetime Revenue and how does it differ from Customer Lifetime Value in a SaaS or subscription business?

Customer Lifetime Revenue Definition for SaaS

Customer Lifetime Revenue is a simpler variant of the Customer Lifetime Value calculation. Customer Lifetime Revenue is an estimate of the lifetime revenues for a customer. The Customer Lifetime Revenue is not the actual historic reportable revenue, rather an estimate or projection of all revenues during the customer lifetime. The number can be discounted for measurement in present value or non-discounted for an absolute estimate.

The significant difference between Customer Lifetime Revenue and Customer Lifetime Value is the former does not incorporate gross margin or cost factors. Customer Lifetime Revenue is a measure of top line revenue contribution, not gross profit contribution.

Like Customer Lifetime Value, the formula for generating the Customer Lifetime Value is based on algebra. A comprehensive write up can be found on these two Wikipedia pages:

Geometric Series
Customer Lifetime Value
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