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Inbound Marketing Blog

How To Calculate Your Customers' Lifetime Value

Before we talk about the how, we should probably ask why should your Customers' Lifetime Value (LTV) matters to you or  your sales team? 

It is one of those 'big picture' metrics that keeps your Finance Director up at night but can often be forgotten by Sales. If your sales team is focused solely on hitting their current quotas, they're probably not looking at LTV and could be missing out on critical future opportunities.

The LTV is the estimated revenue that one of those sales will bring to your balance sheet during the entire span of their relationship with your company.