Key Points: We outlined 8+ different SaaS marketing metrics you must track. Learn how each of these SaaS metrics can help you make better decisions that lead toward growth. Understand where each of these SaaS metrics fit into various and real financial situations. See the SaaS marketing template our team utilizes: the LTV:CAC method. Review […]
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.