LTV
Also: Lifetime Value; LTV
The total gross profit you expect from a customer across their whole relationship with you.
Use gross profit, not revenue — an LTV built on top-line dollars overstates how valuable a customer really is.
Hear it from people who've done it
Get the real-world version of "LTV" drawn from hundreds of conversations with founders and investors.
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CAC
The fully-loaded cost of acquiring one customer — sales and marketing spend divided by new customers won.
LTV:CAC ratio
Lifetime value divided by acquisition cost — a quick read on whether your growth engine is profitable.
Churn
The rate at which customers (logo churn) or revenue (revenue churn) leave over a period.
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