article thumbnail

What is customer lifetime value?

Intercom, Inc.

Customer lifetime value (CLV, also known as CLTV), represents the total estimated amount a customer is expected to spend on your products or services over the course of their lifetime. To estimate CLV, you must first assign a specific value to each of your customers.

article thumbnail

What is Customer Lifetime Value and How to Calculate It

ChurnZero

Customer Lifetime Value (CLTV) , also known as, Lifetime Value (LTV), is the gross profit a customer delivers to your business in their lifetime. It is the amount of revenue your business will make from a customer over their average lifetime as a customer.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Calculate Customer Lifetime Value

Totango

To succeed as a subscription or recurring revenue enterprise, you need to adopt a customer-centered approach. Instead of focusing just on the acquisition of new business, you have to prioritize retaining and nurturing existing customers. In this new market, recurring revenue is ultimately more valuable than new revenue.

article thumbnail

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.

article thumbnail

How to Use Average Order Value and Customer Lifetime Value to Increase Revenue

FastSpring

In which case, you essentially have two options: (1) you can get your customers to spend more on each order (increase the Average Order Value), or (2) increase the frequency at which your customers buy from you (increase Customer Lifetime Value). CLTV helps determine your Cost to Acquire a Customer (CAC).

article thumbnail

Exploring the Importance of Customer Lifetime Value

Totango

Instead, enterprises must nurture every customer relationship to increase retention and customer lifetime value (CLV). . Customer lifetime value is the net profit acquired from a customer throughout a company’s relationship with them. Understanding the Importance of Customer Lifetime Value.

article thumbnail

Net Revenue Vs. Operating Income

Baremetrics

Overview Baremetrics Application of Baremetrics on Net Revenue and Operating Income Dashboards and metrics Forecasts Benefits of using Baremetrics Why Do You Need Baremetrics? Overview In general conversation, the terms revenue and income are interchangeable. Table of Contents. Conclusion. It is a SaaS analytics platform.