What is Lifetime Value (LTV)?
The total revenue a customer generates over their entire relationship with your company.
Definition
Customer Lifetime Value (LTV or CLV) is the projected total revenue a customer will generate from the time they purchase to the time they churn. For B2B SaaS, LTV = Average Revenue Per Account (ARPA) × Average Customer Lifespan in months. A healthy business maintains an LTV:CAC ratio of 3:1 or higher – meaning each customer generates at least 3x what it cost to acquire them.
Why Lifetime Value (LTV) Matters
LTV determines how much you can afford to spend acquiring a customer (CAC). If your LTV is ₹15L and your CAC is ₹5L, you have a 3:1 ratio (healthy). If your CAC is ₹12L, your ratio is 1.25:1 (unsustainable). Improving CAC through AI-powered outbound directly improves LTV:CAC ratio without needing to increase prices.
How IngageNow Uses Lifetime Value (LTV)
IngageNow improves the LTV:CAC ratio from both sides: reduces CAC by 60-70% through AI-efficient outbound, and improves LTV by targeting better-fit customers (higher ICP scores = lower churn). Customers acquired through intent-based targeting churn 30% less than those from generic campaigns.
Try IngageNow FreeRelated Terms
Assigning numerical values to leads to prioritise those most likely to convert.
A detailed description of the type of company that would get the most value from your product.
The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses.