Lifetime Value per Customer (LTV/C) is the amount of revenue a customer will bring in over the course of their lifetime with your company.
LTV/C is calculated by taking the total revenue a customer brings in over their lifetime with your company, and dividing it by the cost of acquiring that customer.
LTV/C is a very important metric because it shows you how much money you can expect to make from each of your customers. It's a good idea to track your LTV/C on a monthly basis and compare it to your net revenue retention.
If your LTV/C is higher than your net revenue retention, it means that you're making more money from your existing customers than you are losing from customers who churn.
If your LTV/C is lower than your net revenue retention, it means that you're losing more money from customers who churn than you are making from customers who stay.