Lifetime Value
The total net profit attributed to the entire future relationship with a customer.
Category
Philosophy
Term ID
lifetime-value
Related
4 Terms
Status
Defined
01 — The Deep Dive
Understanding the Mechanics
LTV is the ceiling for what you can spend on acquisition. If LTV < 3x CAC, your model is terminal. High LTV justifies high-touch sales; low LTV demands automation.
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