LTV (Lifetime Value)
The total revenue a business expects to earn from one customer over their lifetime.
Full definition
Customer Lifetime Value is the projected total revenue a customer will generate before churning. In SaaS, LTV is typically calculated as average monthly revenue per customer divided by monthly churn rate. The LTV to CAC ratio is the dominant metric for measuring sustainable growth. A 3:1 LTV to CAC ratio is considered healthy for most B2B SaaS companies.
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