Lifetime Value
The total revenue expected from a customer across their entire relationship.
LTV (lifetime value) is the dollar projection of all revenue a customer will generate. For a one-time $297 buyer who adds $97 Marketing + $67/mo Maintenance for 12 months = $1,198 LTV.
Related terms
- Customer Acquisition Cost — The total marketing + sales spend divided by the number of new customers acquired.
- Unit Economics — The per-customer math of a business — LTV vs CAC, margin, payback period.
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