LTV

Definitions

1. Short for lifetime value, the estimated total value a customer produces over the duration of the relationship. LTV is often paired with CAC to judge whether a customer acquisition model is economically sound.

   In plain English: A shorthand for how much a customer is worth over time.

   Example: "The board worried because LTV was flattening while acquisition costs kept rising."

Related Terms

• ARR
• LTV / CAC
• Contribution Margin
• Customer Acquisition Cost
• Customer Lifetime Value
• Dollar Retention
• Lifetime Revenue
• CLV