Customer Lifetime refers to **the average duration a customer remains actively engaged with a product or service before discontinuing use**. It is a key metric in understanding customer retention and [[Churn Rate|Churn]] dynamics. ## Importance Understanding customer lifetime helps businesses: - Predict when users are likely to disengage and proactively address churn. - Develop retention strategies to extend customer engagement. - Maximize [[Customer Lifetime Value (CLV or LTV)]] by keeping users engaged longer. - Allocate marketing and support resources efficiently. ## Factors Influencing Customer Lifetime Customer lifetime is primarily affected by factors that contribute to churn, including: ![[Churn Rate#^35a7a9]] ## Measuring Customer Lifetime > [!formula] > $\text{Customer Lifetime} = \frac{1}{\text{Churn Rate}}$ > > Where churn rate is the percentage of customers who stop using a product within a given period. Other approaches may involve *cohort analysis* (grouping users by shared characteristics over time to track retention patterns), *survival analysis* (estimating the probability of customers remaining active over time), or *predictive modeling based on behavioral data* (using machine learning to forecast customer engagement and churn).