Keywords · Monetization · Finance

Customer Lifetime Value (LTV)

The total revenue a business expects to earn from a customer over the entire duration of their relationship.

Why it matters

LTV sets the ceiling for how much a company can afford to spend acquiring a customer while still remaining profitable.

Example

A customer paying $50 a month who stays for 24 months on average has an LTV of $1,200.

Customer Lifetime Value (LTV) — Growth keyword · Cofounderbase