Customer lifetime value
Customer lifetime value, or LTV, estimates the economic value a commercial relationship provides over its duration
What it means, how it is used and where it comes up, with its related concepts.
What it is and how it works
The definition can use revenue or margin, so it should be made explicit. For investment decisions it is worth considering cost to serve, retention and uncertainty. Comparing it with acquisition cost requires compatible bases and time horizons.
Also known as
LTV
Topics