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Metric Glossary
Customer Lifetime Revenue (CLR)
Customer Lifetime Revenue (CLR)

How the CLR is defined and calculated

Valentine Strunz-Happe avatar
Written by Valentine Strunz-Happe
Updated over a week ago

The current net revenue you generate per customer.


Formula

Customer Lifetime Revenue = Net Revenue / Customers

Explanation

The current net revenue you get from each customer.

This KPI is sometimes abbreviated as CLR.

Notes

When displaying CLR, we usually use the Retention Report behaviour of the Date Range as it allows for a better analysis,

If that's the case, knowledge article of the respective report will always say so.


When looking at this value make sure to take the following things into consideration:

  1. This number is always changing - as your customers keep placing repeat orders there CLR will increase.

  2. Be careful when comparing different time period. When you select a Date Range, we use that Date Range to filter out customers that placed their first order in that Date Range but include their complete purchasing activity, until today, to calculate their CLR. That already makes comparison easier. However, customers that have placed their first order two years ago, had more time to place repeat orders and therefore their CLR is very likely going to be higher compared to customers that placed their first order recently. To remove this bias against recently acquired customers make sure to look at the Predicted Customer Lifetime Revenue (pCLR)


Sometimes, this metric will be displayed in conjunction with a time period - eg. CLR 90 days

If this is the case, the displayed CLR value is a subset, namely the CLR generated within the first 90 days after a customer has placed his first order (including the net revenue from the first order itself).

Used in the following reports

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