Lifetime Value (LTV)

What is lifetime value?

The lifetime value (LTV)
of a customer is the estimated profit you’ll make from a client over the course of their relationship with your product and brand.

LTVs are powerful metrics for getting companies to think more long-term and it gives you a target number to have in mind when you’re looking at the cost it takes to get new customers. Sometimes it might be more beneficial to focus on your existing customers than to rapidly spend to try to get new ones.

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