ACV is an abbreviation for which of the following?

ACV, or Annual Contract Value, is a key metric commonly used in subscription-based businesses and SaaS (Software as a Service) models. It represents the total revenue that a company expects to generate from a customer over the duration of a one-year contract. Understanding ACV is vital for customer success managers because it helps gauge the overall health of customer accounts, forecast revenue more accurately, and strategize for growth.

By focusing on ACV, customer success managers can prioritize accounts based on their revenue contribution and monitor changes, such as upgrades, downgrades, or churn rates. This metric also supports team efforts to enhance customer retention and satisfaction since it directly correlates with the revenue generated from each client.

The other terms listed in the options do not accurately reflect industry standards for measuring contract value. Average Customer Value does not represent a specific time frame like annual; Assured Customer Volume is not a recognized term in this context, and Aggregate Contract Value implies a total sum without clarifying the annual aspect, which is essential for financial analysis and business forecasting. Thus, B stands out as the most relevant and accurate definition for ACV.