Customer Lifetime (Average)

Definition

The expected number of periods a customer stays, approximated as the inverse of churn.

Formula

Lifetime (months) = 1 / Monthly logo churn

Worked Example

Monthly churn 2.5%:

Lifetime = 1 / 0.025 = 40 months

Interpretation & Pitfalls

This assumes constant churn — usually wrong (churn is highest early). For serious LTV work, use cohort curves instead of the simple inverse.

In TupicFinance

Cohort data lets the platform replace the naive inverse with observed survival curves.