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.
Keywords · Monetization · Finance
The total revenue a business expects to earn from a customer over the entire duration of their relationship.
LTV sets the ceiling for how much a company can afford to spend acquiring a customer while still remaining profitable.
A customer paying $50 a month who stays for 24 months on average has an LTV of $1,200.