AIMarketing Workbench
Start free
← Glossary
MetricsSaaS

Customer Lifetime Value (LTV)

The total revenue a company can expect from a single customer account over the life of the relationship.

LTV (sometimes CLV) is calculated as average revenue per account divided by churn rate, or more precisely as the sum of all future revenue discounted to present value. For B2B SaaS, LTV is primarily driven by retention (low churn) and expansion (net revenue retention above 100%). PMMs influence LTV through: better ICP targeting (higher-fit customers churn less), customer marketing that drives product adoption, and expansion campaigns that grow account revenue.
Related terms
Customer Acquisition Cost (CAC)

The total cost of acquiring a new customer, including marketing and sales spend.

Churn Rate

The percentage of customers or revenue lost over a given period.

Net Revenue Retention (NRR)

A metric that measures revenue from existing customers including expansion, contraction, and churn.

Put this into practice

AI Marketing Workbench gives you the modules to apply every concept in this glossary — positioning, ICP, messaging, battlecards, and GTM planning in one connected workspace.

Start freeBrowse glossary