LTV
Also known as lifetime value, customer lifetime value
Lifetime value is the profit a customer is expected to generate over the whole of their relationship with a company.
Why It Matters
It is an estimate built on assumptions about retention and margin, and small changes in those assumptions transform the case for spending on growth.
Related Terms
- CACCustomer acquisition cost is the total sales and marketing spending required to win one new customer.
- ChurnChurn is the rate at which customers stop paying over a given period.
- Unit EconomicsUnit economics is the profit or loss on a single unit of business: one customer, one order or one transaction, once the direct costs of serving it are counted.
- Recurring RevenueRecurring revenue is income that repeats on a contracted or habitual basis, such as subscriptions or service agreements, rather than being won again with each sale.
VANTAGE52 Coverage
Published reporting filed under the topics behind this concept.
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