Customer lifetime value
The total revenue a business can expect from a customer over the entire duration of their relationship.
What is Customer lifetime value?
What is Customer lifetime value?
Customer Lifetime Value (CLV or LTV) measures how much revenue a customer generates from the moment they sign up until they stop using a product. It helps companies understand how much they can afford to spend on customer acquisition and retention. Increasing CLV often involves improving user experience, reducing churn, upselling, cross-selling, and building long-term customer relationships. It is a critical metric for predicting sustainable growth in SaaS businesses.