How To Calculate Customer Lifetime Value And Run Cohort Analysis Using Exports

Calculating Customer Lifetime Value

While Recurly's Analytics platform provides the necessary underlying data through exports, Customer Lifetime Value (LTV) must be calculated externally by combining several data points. LTV measures the average revenue a customer generates before churning.

• Identify Subscription Dates: Use the Subscriptions export to find the original activated_at date (which determines the cohort) and the expires_at date (which indicates churn) for each customer/subscription.

• Capture Transaction Revenue: Use the Invoices – Summary export to capture the total transaction revenue (total_amount_in_cents) for each account_code.

• Calculate Gross Revenue: Group the revenue data by account_code to calculate the Gross Revenue Per Customer.

Running Deep-Dive Cohort Segmentation

After calculating the Gross Revenue Per Customer, you can segment this data to run a deep-dive cohort analysis and analyze LTV by key segments.

• Segment your data using custom fields (for example, territory), plan_code, or adjustment_coupon_code (which you can find in the Adjustments export).

• This segmentation allows you to understand how LTV varies across specific customer groups, helping you optimize subscription pricing and customer acquisition efforts within Recurly Commerce.