Customer Lifetime Value
Customer lifetime value (LTV) estimates the total revenue a customer will generate across all transactions over their relationship. For Stripe users, it aggregates both one-time and recurring payments into a comprehensive value figure.
Stripe metric
LTV = Average Revenue Per Customer × Average Customer Lifespan
Customer lifetime value (LTV) estimates the total revenue a customer will generate across all transactions over their relationship. For Stripe users, it aggregates both one-time and recurring payments into a comprehensive value figure.
Full guide: definition, formula, and benchmarksHow to calculate Customer Lifetime Value
LTV = Average Revenue Per Customer × Average Customer Lifespan
Why Customer Lifetime Value matters for Stripe users
LTV determines sustainable acquisition spending and guides investment in retention versus growth. Businesses with high LTV can afford more aggressive customer acquisition strategies.
Stripe users can compute LTV from comprehensive payment history, segmenting by acquisition cohort, product, and payment method to find the most valuable customer profiles.
Driver
Conversion rate
Outcome · 58% contribution
Revenue
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