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What is customer lifetime value?

Intercom, Inc.

Customer lifetime value (CLV, also known as CLTV), represents the total estimated amount a customer is expected to spend on your products or services over the course of their lifetime. To estimate CLV, you must first assign a specific value to each of your customers.

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Guide on Customer Lifetime Value (LTV) for SaaS Businesses

Subscription Flow

First impressions are rarely the last impressions, but they can prove to be just that for your company if you do not strategize a high customer lifetime value (LTV) for SaaS businesses. When customers consistently return to make purchases, it is usually a positive indication that your company is doing well.

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LTV Optimization 101: How To Optimize Customer Lifetime Value and Drive More Revenue?

User Pilot

You can retain more customers and generate more revenue with the right approach. By making informed decisions with LTV optimization, you can create a cycle of customer loyalty and long-term profitability. TL;DR SaaS Customer lifetime value (LTV) measures the total revenue a customer will bring to a company over time as a user.

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12 Effective Ways to Increase Customer Lifetime Value for SaaS

User Pilot

So what can you actively do to give customer lifetime value a boost? In this guide, we’ll explore twelve tactics to pump this metric up—from personalizing experiences to offering proactive assistance—and see how they can help you nurture customer retention and growth. What is customer lifetime value?

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Why Tilting Just a Smidge from Self-Service Can Grow Your Revenue 30x

SaaStr

No matter how hard I tried at EchoSign to drive up self-service as a % of our revenue, the laws of this math and gravity held it back to a minority of our revenue. The key is a combination of (x) churn and (y) value. But that 5-seat Team edition sale customer … is still there in Year 2 and Year 3, paying you.

Revenue 264
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CLTV: Important. But Not the North Star Metric It Used To Be.

SaaStr

Q: What is customer lifetime value, and why is it important? In the early days of SaaS, we all focused on Customer Lifetime Value. You do need to know how long your customers last. They were earlier to mass-scale recurring revenue services on the web than B2B was. It might justify it.

Metrics 291
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5 Interesting Learnings from Xero. As It Approaches $1B in ARR.

SaaStr

Xero is a very interesting SaaS case study with (x) the majority of its revenue outside the U.S., Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! Customer Lifetime Value is 81 months, from SMBs. So nail a niche!!