Lifetime Value (LTV)

定义

LTV is the total gross profit a customer generates over their entire relationship with the company, driven by revenue per customer, gross margin, and retention.

它在融资中如何出现

Paired with CAC, LTV defines whether growth is worth buying: an LTV-to-CAC ratio of 3 or more is the standard SaaS benchmark.

常见问题

How do I calculate LTV for an early startup?

With limited history, use average revenue per account, gross margin, and observed churn to estimate; label it clearly as an estimate, since investors will.

Why use gross profit rather than revenue in LTV?

Because only margin funds the business; revenue-based LTV flatters low-margin models.

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