Categories
Marketing Acronyms

Life Time Value (LTV)

AKA:
Customer lifetime value (CLTV)

What does it mean:

Plain and simple it’s the average revenue that each of your customers gives you over their lifetime. It’s most applicable to a recurring SaaS business model but can be used in other models. 

The Formula:

Average Monthly Recurring Revenue Per Customer (ARPU) ÷ User Churn Rate = LTV

Use it in a sentence:

To colleagues:

“Our LTV has been very flat, are there any add-on services we can start to sell to increase it?”

To investors:

“We are improving our LTV by reducing churn and selling into larger companies now.”


At a party:

“I don’t want to brag, but our LTV is higher than Dropbox.”


Want to learn WTF more marketing acronyms mean?

Get the book!


More Marketing Definitions

  1. Average Revenue Per User (ARPU)
  2. Annual Recurring Revenue (ARR)
  3. Average Order Value (AOV)
  4. Customer Acquisition Cost (CAC)
  5. Conversion Rate Optimization (CRO)
  6. Cost Per Click (CPC)
  7. Cost Per Lead (CPL)
  8. Cost Per Mille (CPM)
  9. Call To Action (CTA)
  10. Click Through Rate (CTR)
  11. Google Analytics (GA)
  12. Gross Merchandise Value (GMV)
  13. Key Performance Indicators (KPI)
  14. LifeTime Value (LTV)
  15. Monthly Recurring Revenue (MRR)
  16. Month on Month (MoM)
  17. Net Promoter Score (NPS)
  18. Search Engine Optimization (SEO)
  19. Search Engine Results Page (SERP)
  20. Social Media (SoMe)
  21. Unique Selling Proposition (USP)
  22. Urchin Tracking Module (UTM)
  23. Word of Mouth (WOM)