We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Lifetime value (LTV)

What is lifetime value?

Lifetime value (LTV) is a key metric that represents the total net revenue a company can expect to earn from a customer over the duration of their relationship. It's an important number that helps businesses understand the financial value of each customer and make strategic decisions about sales, marketing, product development, and customer support.

Understanding LTV is all about taking the long view of customer relationships. By knowing the average amount of money a customer will bring into your business over time, you can determine how much you should be willing to spend to acquire new customers (Customer Acquisition Cost or CAC) and keep existing ones (Customer Retention Cost). Moreover, LTV can be used to segment customers and differentiate high-value ones, thus informing personalized marketing and service strategies.

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.