Question 1

What is LTV (Customer Lifetime Value)?

Accepted Answer

LTV is the total revenue you can expect from a single customer over their entire relationship with your business. It's calculated by multiplying average revenue per user (ARPU) by the average customer lifetime.

Question 2

Why is LTV important for SaaS businesses?

Accepted Answer

LTV helps you understand how much you can afford to spend on customer acquisition (CAC). A healthy LTV:CAC ratio (at least 3:1) means your business model is sustainable and profitable.

Question 3

How can I increase my LTV?

Accepted Answer

Increase LTV by: reducing churn (improve product, customer success), increasing ARPU (upsells, add-ons, price increases), expanding into new use cases, and improving onboarding to drive faster value realization.

Question 4

What's the difference between LTV and CLV?

Accepted Answer

LTV (Lifetime Value) and CLV (Customer Lifetime Value) are the same metric. Both measure the total revenue expected from a customer over their lifetime.

LTV Calculator

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