## Definition of ALCR The ALCR metric (Average Lifetime Customer Revenue) is a [[Product Metric]] used to measure the average amount of [[Revenue]] generated from each customer over the lifetime of the customer's relationship with the company. It is useful for understanding the long-term [[Customer Value]] and for making decisions about [[User Retention]] strategies. ## ALCR Formula & Calculation The ALCR metric is calculated by dividing the total [[Revenue]] generated from customers over the entire period of their relationship with the company by the total number of customers during that period. For example: Total Revenue generated from customers over the past 12 months / Total number of customers during the same period = ALCR For example, if a company had 50 customers in the past 12 months and generated $500,000 in revenue from those customers, the ALCR would be: $500,000 / 50 = $10,000