Customer Lifetime Value (LTV) · Technology
Customer Lifetime Value (LTV) for Technology.
The total revenue a customer is worth.
Technology companies built to compound.
Finance & Strategy · Technology
Why technology operators use the customer lifetime value (ltv).
Calculate customer lifetime value using average order value, purchase frequency, gross margin, and customer lifespan. LTV is the foundation for pricing, CAC budgets, and retention investment.
Technology companies operate in a market that rewards speed, focus, and durable compounding. SAZ partners with founders and operators in software, SaaS, infra, and tech-enabled services to sharpen strategy, fix growth, and scale operations.
Benchmarks
What good looks like — typical ranges to compare against.
< 1× CAC
Losing money
1–3× CAC
Recovering — but tight
3–5× CAC
Healthy SaaS / DTC benchmark
> 5× CAC
Elite — invest more in acquisition
The formula
How customer lifetime value (ltv) is calculated.
LTV = AOV × Purchase frequency × Gross margin × Customer lifespanIndustry context
What changes when customer lifetime value (ltv) is applied to technology.
PMF, positioning, and ICP
Growth model and channel mix
Pricing, packaging, and retention
Scaling org and ops
Run the numbers
Open the customer lifetime value (ltv).
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Customer Lifetime Value (LTV) · Technology
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