Customer Lifetime Revenue Definition for a SaaS Business

Customer Lifetime Revenue Definition for SaaS

Customer Lifetime Revenue (CLR) is a simpler variant of the Customer Lifetime Value calculation. This metric is an estimate of the lifetime revenues for a customer. CLR 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. CLR is a measure of top line revenue contribution, not gross profit contribution.

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