AVERAGE CUSTOMER LIFESPAN

Understanding the Average Customer Lifespan (ACL) is crucial for any business aiming to optimize its customer retention strategies.

ACL represents the average duration a customer stays engaged with your business from their first purchase to their last. The result is also used to calculate the Lifetime Value (LTV).

By knowing this key metric, you can make informed decisions on resource allocation, improve customer experience, and ultimately drive higher profitability.

Use our simple ACL calculator below to quickly determine your Average Customer Lifespan.

Why is it important to measure?

1. Will help you develop strategies to improve customer retention, which is often more cost-effective than acquiring new customers.
2. By knowing how long customers typically stay, you can estimate the total revenue they generate. This helps in budgeting and forecasting.
3. A decreasing ACL will indicate issues with your offerings. Conversely, an increasing ACL can validate the success of new initiatives.
4. Knowing when customers are likely to leave allows you to intervene proactively, providing value and support to extend their lifespan.