Average customer lifespan is the average duration a customer continues to engage with a business before ceasing to make purchases or interact with the brand. It is used to assess customer retention and loyalty. It helps predict future revenue, tailor marketing strategies, and improve customer satisfaction.For example, say a B2B software company provides project management solutions with an average customer lifespan of five years.If a customer pays an annual subscription fee of $1,200, over the course of five years, their total revenue contribution would be $6,000 ($1,200/year * 5 years).Understanding this average customer lifespan allows the company to forecast revenue, calculate lifetime value, and implement strategies to extend customer relationships beyond the initial five-year period.