What is LTV?
LTV definition: LTV is short for Lifetime Value; it refers to a brand’s predicted worth of a customer over the course of their relationship.
LTV works on the premise that not all customers are equal in monetary value. Some of them will generate more income for a brand than others.
Calculating LTV can be tricky and needs to take into account a number of factors like:
- Advertising costs
- Churn rates
- Future discounts
- Market changes
- Gross profit
- Net profit
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Additional resources about LTV
- What Is Customer Lifetime Value (CLV) and How Do You Measure It?
- How To Calculate LTV For Saas The Right Way
- LTV: How to calculate lifetime value
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