Glossary
Customer Lifetime Value (LTV)
Customer Lifetime Value (LTV) is the total revenue, or profit, you can expect from a customer over the entire time they do business with you.
LTV turns one-off transactions into a longer view: a customer who spends $100 a month for three years is worth far more than their first order suggests.
Knowing LTV tells you how much you can afford to spend to acquire a customer and still grow profitably, which is why it is always read next to CAC.
Related terms
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