Expert Guide: How to Calculate SaaS LTV - Saffron Edge
To Calculate Saas Ltv (Software-as-a-Service Lifetime Value), use the formula: LTV = (Average Revenue Per Customer * Gross Margin %) / Revenue Churn Rate. This metric reveals the value of the complete client relationship to your company and is important for understanding customer knowledge, determining acquisition costs, and informing marketing strategies. SaaS LTV is the total value of a customer over their lifecycle, helping companies remain profitable and maximize customer lifetime value.
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