In the SaaS industry, your most lucrative opportunities will be within your existing client base. The reason for this is that it takes a lot of time and effort to develop trust and brand loyalty. Once a client is familiar with your company and products, they will be more likely to purchase products and services […]
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.