ACV (Annual Contract Value)
The average annualized value of a customer contract: total contract value ÷ contract years, averaged across deals. A three-year €90,000 deal has an ACV of €30,000. It decides which sales motion pays off, since low ACV needs volume with little human touch while high ACV justifies discovery calls, champions and long cycles. One-off fees stay out.
More terms from Metrics & KPIs
- CAC (Customer Acquisition Cost)
- LTV (Customer Lifetime Value)
- ARR (Annual Recurring Revenue)
- MRR (Monthly Recurring Revenue)
- NRR (Net Revenue Retention)
- Churn Rate
- Conversion Rate
- CPL (Cost per Lead)
- ROI (Return on Investment)
- GRR (Gross Revenue Retention)
- Expansion Revenue
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