LTV
Lifetime Value. Total revenue expected from a customer over the whole relationship. Divided by CAC, it yields the ratio investors tattoo on their hearts: 3:1 good, below 1:1 doomed.
Heard in the wild
“Enterprise LTV justifies the CAC; SMB barely breaks even.”
Tone check: Technical
LTV models are assumptions in a trench coat. Ask what churn rate the model assumes and whether reality agrees.