Meaning
Lifetime Value; an estimate of the average total gross revenue a customer generates throughout their entire relationship with a business.
Three examples from work
Investor presentation
CEOOur enterprise customer LTV exceeds thirty thousand dollars over three years.
InvestorYour high net dollar retention explains the strong LTV curve.
Product monetization
POAnnual billing plans increase customer LTV by cutting monthly cancellation rates.
Growth LeadOffering a two-month discount on annual plans is a proven win.
Economics check
CFOCan we afford higher marketing bids for this campaign?
Marketing LeadYes, because the projected LTV of these enterprise leads justifies the acquisition cost.
Pronounce each letter: 'L-T-V'. A healthy software business maintains an LTV at least 3x higher than its customer acquisition cost (LTV:CAC > 3:1).