Glossary / SaaS Product & Business Metrics

What is LTV (Lifetime Value)?

The total revenue a customer generates over the full relationship with your company. It is commonly estimated using average revenue multiplied by average lifespan.

Definition

The total revenue a customer generates over the full relationship with your company. It is commonly estimated using average revenue multiplied by average lifespan.

Why it matters

LTV tells you how much a customer is worth and helps frame sustainable acquisition spend.

Chat with founder