In plain English
Projected gross profit from a customer across the full relationship. In SaaS: ARPA × gross margin ÷ churn.
Why it matters now
LTV funds everything upstream — CAC, R&D, expansion. Cross-border vendors often misprice because they apply home-market LTV to foreign markets where churn behaves differently.
How it shows up in practice
- 01
Model LTV per segment and per region separately.
- 02
Account for currency risk and local payment failure rates.
- 03
Expansion revenue (NRR > 110%) is the biggest LTV lever.
Related terms
From vocabulary to strategy
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