Lifetime Value (LTV)

LTV metric allows businesses to calculate how much they can profitably spend to acquire a new customer (CAC). If your LTV is $1000, spending $100 to acquire a customer (CAC) is highly profitable. If your LTV is $50, that same CAC is a fast track to bankruptcy.

Maximizing LTV involves improving customer service, upselling, cross-selling, and ensuring customers succeed with your product.