Customer Lifetime Value (CLV or LTV) measures how much revenue a customer generates from the moment they sign up until they stop using a product. It helps companies understand how much they can afford to spend on customer acquisition and retention. Increasing CLV often involves improving user experience, reducing churn, upselling, cross-selling, and building long-term customer relationships. It is a critical metric for predicting sustainable growth in SaaS businesses.
Glossary · C
Customer lifetime value
The total revenue a business can expect from a customer over the entire duration of their relationship.
More terms starting with C
- Churn rateThe percentage of customers who cancel or stop using a subscription service during a given period.
- CI/CD PipelineContinuous Integration and Continuous Deployment processes that automate code testing, building, and deployment.
- Cloud computingThe delivery of computing services including servers, storage, databases, and software over the internet instead of local infrastructure.
- Code repositoryA storage location where software source code and related files are kept, typically using version control systems like Git.
- Conversion rateThe percentage of users who complete a desired action (such as signing up, purchasing, or upgrading) out of the total number of visitors.
- CRMSoftware that helps businesses manage interactions with existing and potential customers to improve relationships and retention.