Lifetime Value (LTV)

The total revenue a customer generates over their entire relationship with a business. For SaaS: monthly revenue / monthly churn. For service businesses: avg monthly retainer × avg months retained. Healthy LTV:CAC ratio is 3:1 or better. AI retention agents (proactive check-ins, churn-risk flags, upsell triggers) move LTV by reducing churn 20-40% and increasing expansion revenue.