Glossary
Lifetime Value (LTV)
Lifetime Value (LTV) is a calculation of how much a new customer will be worth to your company over their entire lifetime.
This calculation can alter other calculations, such as the acceptable cost of acquiring a new customer. The initial value of that customer may be too low to justify a particular cost, but their LTV could justify the advertising cost to acquire them.
Related Terms
Glossary
Software as a Service (SaaS)
Software tools that are an end product in themselves, but help to facilitate other services or product creation. Examples include project management software and graphic design software.
Entire companies exist to provide software tools to individuals or businesses, as well as support for those products.
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Glossary
Lead Generation
The act of producing prospective customers for a business. Lead generation tools run the digital gamut, and include elements on websites, paid ads, social media posts and word-of-mouth campaigns.
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Glossary
Call to Action (CTA)
A Call to Action is any prompt on a website or app asking the user to take a specific action, often in the form of a clickable button. “Buy Now” is a common example, though calls to action don’t always have to involve a purchase. Signing up for a newsletter or downloading a free eBook can be valuable CTAs that increase user trust and also obtain contact information of interested visitors.
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