Customer Lifetime Revenue Definition for a SaaS 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.

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