SaaS Marketing Glossary
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Customer Lifetime Value (LTV)
Core Financial Metrics

Customer Lifetime Value (LTV)

LTV, Customer Lifetime Value
Definition

How much money a customer will bring to your business over time.

Why it matters

LTV helps you understand how much you can afford to spend to acquire a customer. If your LTV is $100, you can't spend $150 to get that customer. Knowing your LTV prevents you from going broke by spending too much on ads. It shifts your focus from "making a quick sale" to "keeping a customer happy for a long time."

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