LTV Definition

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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Popularity of the term LTV

Concept related to LTV

• CRM
• ARR
• MRR

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