Looking at the growth rate of the SaaS industry, you’d think that people are more than willing to spend money on software solutions that promise to make their everyday lives (and professional endeavors) easier. Not quite, though. Despite projections forecasting the total SaaS spend to reach $171.9 billion in 2022, most buyers still prefer free solutions. […]
What is Lifetime Value?
Lifetime value (LTV) is an estimate of the average revenue a single customer will produce throughout their lifespan as a customer. The average revenue generated or “worth” of a customer can help a business make a lot of economic decisions that directly impact the company’s resources, marketing budget, forecasting, profitability, and more.
Lifetime value is an especially important metric in subscription-based business models where customers are called to engage with the company in various ways. Lifetime value is really all about keeping a business sustainable through its customers. Without customers, a business cannot survive in the short or long term.