Lifetime Value (LTV)
The total revenue a business can expect from a single customer over the entire duration of their relationship.
What is Lifetime Value (LTV)?
What is Lifetime Value (LTV)?
Lifetime Value (LTV) measures the total revenue a customer is expected to generate from the moment they join until they stop using a product or service. It helps businesses understand customer profitability, forecast revenue, and allocate marketing budgets effectively. A higher LTV allows companies to spend more on acquisition, while a low LTV signals the need for improved retention strategies. LTV is a critical metric for SaaS, subscription models, and eCommerce brands.