GTM Dictionary

Lifetime value

also: LTV, CLV

Lifetime value (LTV) is the total revenue an account is expected to generate over the life of the relationship: a survival curve, how long they will stay, multiplied by expected contract value, discounted to today.

Scoring on propensity alone fills the boat with leaky deals. Weighting by LTV keeps a durable, larger account from being outranked by a quick win that churns in year one. Retention risk lowers an account's value before anyone calls it.

Watch: Adam explains it (badly)

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“Sure, they signed fast. They'll also ghost you by Q2. Ask me how I know.”
AAdam
Comedian-in-residence · 0:15

Fifteen seconds of lifetime value, as explained by Adam, our comedian-in-residence. If the definition did not land, maybe the joke will.

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See lifetime value in context in the full methodology.Read the guide