Acronyms Dictionary

LTV

Definition

Lifetime Value. A prediction of the net profit attributed to the entire relationship with a customer.

Deep Dive

LTV (often used interchangeably with CLV) represents the total amount of money a customer is expected to spend with your business over their lifetime. It is a crucial metric for determining how much you can spend on marketing (CAC) while remaining profitable.

Examples & Use Cases

1Increasing LTV by reducing "Churn Rate" through better customer support
2Calculating that an annual subscriber has a higher LTV than a monthly one
3Using LTV to identify the most valuable customer personas for targeted advertising

Related Terms

CACCLVChurn