LTV

Customer Lifetime Value (LTV) is one of the most important metrics in many enterprises. It is particularly significant for companies that operate in the SaaS (software as a service) model and billing cycles such as monthly, annual, or quarterly. 

Lifetime value is a metric that indicates the revenue generated from a customer during the time they use the service. 

How to calculate LTV?

LTV metrics vary depending on the industry in which we operate. Calculating LTV is relatively simple - it is simply the sum of fees paid by the customer during the time they used our service. The goal should be for LTV to be at least three times higher than the customer acquisition cost.

Read also:

1. NPS

2. MRR

3. Conversion rate 

Useful links:

https://pl.wikipedia.org/wiki/LTV_(marketing)

https://blog.hubspot.com/service/how-to-calculate-customer-lifetime-value

https://mamstartup.pl/sprzedaz/10320/6-wskaznikow-ktore-warto-mierzyc-tworzac-startup-w-modelu-saas