Glossary
LTV (Lifetime Value)
LTV (Lifetime Value, or CLV for Customer Lifetime Value) is the total net revenue a customer generates over the full duration of their commercial relationship with the company, after deducting variable costs.
Also known as
- LTV
- CLV
- Customer Lifetime Value
- customer lifetime value
The canonical B2B SaaS formula: **LTV = ARPU × gross margin / monthly churn**. Example: a customer at €100 MRR, with 75% gross margin and 3% monthly churn → LTV = 100 × 0.75 / 0.03 = €2,500. This formula assumes stationary behavior; in practice you should segment LTV by acquisition cohort (month of signup) because early customers often have a very different LTV from customers in a mature cohort.
Classic mistakes: (1) confusing LTV with contracted ARR (ARR doesn't deduct variable costs), (2) computing an "average" LTV across heterogeneous segments (an SMB and an enterprise don't churn at the same rate), (3) ignoring expansion revenue (upsell, cross-sell) — in top-tier B2B SaaS, expansion accounts for 30–50% of total LTV. Best-in-class 2026 SaaS targets Net Revenue Retention (NRR) > 110%, meaning a cohort generates more revenue at 12 months than at month 0 thanks to expansion.
In the getchatsocial.com product
getchatsocial.com doesn't measure LTV directly, but the `score_lead` scoring algorithm weights leads using LTV proxies (company size, industry, ICP fit) to prioritize outreach toward high-expected-value accounts.
FAQ
How do I calculate LTV for a B2B SaaS?
Canonical formula: ARPU × gross margin / monthly churn. For more precision, calculate by acquisition cohort and factor in expansion revenue (upsell, additional seats). Top-tier SaaS targets Net Revenue Retention > 110%.
What's the difference between LTV and ARR?
ARR (Annual Recurring Revenue) is contractual annual revenue with no deductions. LTV is total net revenue over the customer's lifetime, after gross margin. A customer with €1,200 ARR and 30% margin will have a very different LTV from one with €1,200 ARR and 80% margin.