What does TCV stand for in customer success metrics?

TCV stands for Total Contract Value, which is a key metric used in customer success and subscription-based businesses to measure the total revenue value of a contract over its entire term. This figure helps organizations understand the financial impact of a customer relationship, providing insights into the expected revenue stream from customer agreements.

Understanding TCV allows Customer Success Managers to better forecast revenue, assess the health of customer accounts, and strategize for upselling or renewal opportunities. Evaluating TCV is crucial for assessing the lifetime value of customers, ensuring that customer success initiatives align with financial goals, and effectively managing customer relationships to maximize value.

The other options refer to metrics that, while relevant in various contexts, do not capture the standard definition and usage of TCV in customer success management.