Lifetime Value (LTV) is the total revenue a business expects to generate from a single customer over the entire duration of their relationship. LTV is a critical metric for understanding whether your business model works and how much you can afford to spend on acquisition.
Definition
Understanding Lifetime Value (LTV)
Lifetime Value (LTV) is the total revenue a business expects to generate from a single customer over the entire duration of their relationship. LTV is a critical metric for understanding whether your business model works and how much you can afford to spend on acquisition.
Related Concepts
Related Terms
- CAC
- Unit economics
- Churn rate
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