LTV
Total revenue a business expects from a customer over the relationship.
What is LTV?
LTV (Customer Lifetime Value) estimates the total revenue or profit a business expects to earn from a single customer over the entire length of their relationship. It is commonly estimated from average revenue per customer, gross margin, and the expected customer lifespan or churn rate. LTV is often compared to acquisition cost, with a healthy LTV-to-CAC ratio signalling profitable growth.