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What is Customer Lifetime Value?

Neil Patel

In the most basic terms, customer lifetime value measures how much a customer will spend over their entire “lifetime” with your company. Customer lifetime value goes beyond traditional marketing practices by providing insight into a customer’s long-term value to your business.

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Customer Lifetime Value and Customer Lifetime Care

Baremetrics

Customer lifetime value (CLV) is one of the main metrics SaaS companies track to monitor their profitability and growth. CLV is simply the average amount of revenue you can expect to generate from a single customer before they churn. Note that customer lifetime value is alternatively abbreviated as CLV, LTV, and CLTV.

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Subscription Finance: What is Customer Lifetime Value?

FastSpring

However, there’s one metric that doesn’t get as much attention—customer lifetime value. Since most SaaS and subscription-based businesses depend on recurring payments to sustain themselves, it can pay dividends to keep a close eye on lifetime value and customer retention rates.

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SaaS Renewals: A Guide for Increasing Customer Retention (+Best Practices)

User Pilot

TL;DR SaaS renewals includes the process of renewing a subscription to an online-hosted software service. Proactively managing SaaS renewals and customer engagement reduces both involuntary and voluntary churn. Excellent SaaS renewal rates range from 80% to 90%, indicating strong customer success and value delivery.

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12 Go-To-Market (GTM) Metrics You Should Track for SaaS

User Pilot

The total expense of bringing a new customer on board. Customer churn rate. Customer lifetime value. The total revenue a company can expect from a single customer over the course of their relationship. Customer activation rate. Number of qualified leads. Net Promoter Score.

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What is Product-Led Innovation? Strategies, Examples, and More

User Pilot

PLG and SLG differ in focus: PLG centers on product appeal for growth, while SLG relies on sales strategies and personal interactions. Product-led growth business suits products that meet unique market needs, have a quick value realization for users, and fit a freemium model. What are the key elements of product-led innovation?

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Top 10 Business Metrics for Shopify App Developers

Baremetrics

The Shopify App Store brings together Shopify app developers and Shopify shop owners for their mutual benefit. To get the most out of the time and money invested into their apps, Shopify App Developers need to track the core metrics of their industry. Churn rate: How quickly are you losing customers or revenue?