Customer Lifetime Value Meaning

This problem practices a core SaaS metric, customer lifetime value, and the idea of measuring how much revenue a company expects to earn from a typical customer over the full relationship. Candidates need to understand the intuition behind customer economics, why recurring revenue models care about long term value rather than just initial sales, and how this metric is used to judge the quality of the business model. Interviewers ask about LTV because it helps test whether you can think about retention, monetization, and the balance between revenue generated and the cost of acquiring customers.