User Lifetime Value (LTV)
Content
Definition
User Lifetime Value (LTV) is the total revenue a business can expect from a single customer account throughout the business relationship.
Usage and Context
User lifetime value (LTV) calculates the total revenue expected from one customer during their relationship with the business.
Frequently asked questions
- What does a lifetime value LTV calculation tell a company? LTV calculation shows the total revenue a company can expect from a single customer over their relationship.
- What is user LTV? User LTV (Lifetime Value) is the total revenue a business can expect from a single user over the entire duration of their relationship with the product or service.
- Is customer lifetime value the total revenue a company can expect from a single customer over time? Yes, customer lifetime value (CLTV) is the total revenue a company can expect from a single customer over the entire period of their relationship.
Benefits
User lifetime value (LTV) estimates total revenue from a customer, guiding marketing spending.
Conclusion
User lifetime value (LTV) estimates total revenue from a customer, guiding marketing investment decisions.
