Glossary
LTV (Lifetime Value)
The total gross profit a customer is expected to generate over their relationship.
Definition
Customer Lifetime Value (LTV) is the expected gross profit from a customer across the full duration of their relationship. The common shorthand: average revenue per customer × gross margin ÷ monthly churn rate.
Why it matters
LTV:CAC ratio is the single best test of unit economics. Healthy B2B SaaS sits at 3:1 or better with payback under 12-18 months.
More terms
ICP (Ideal Customer Profile)
The exact firmographic, persona and trigger combination of the accounts most likely to buy from you.
SDR (Sales Development Representative)
The role responsible for prospecting and booking qualified meetings for closers.
BDR (Business Development Representative)
An outbound prospecting role, often used interchangeably with SDR.
MQL (Marketing Qualified Lead)
A lead that has shown enough interest in your marketing to be worth a sales follow-up.
SQL (Sales Qualified Lead)
A lead that sales has accepted and confirmed is worth working toward a deal.
SAL (Sales Accepted Lead)
The intermediate step between MQL and SQL where sales accepts ownership.
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