Annual Contract Value (ACV)

Definition

The average annualised revenue per customer contract. ACV is calculated by dividing total contract value by the number of years in the contract term.

Why It Matters

ACV determines your outbound economics. Higher ACV means you can afford more touches per prospect (including phone calls and personalised research). Lower ACV requires more efficient, high-volume approaches. Understanding your ACV shapes your entire outbound strategy.

Related Terms