Back to Glossary
LTV (Lifetime Value)
Definition
The total revenue a customer generates throughout their relationship with a business. Used to determine how much to spend on acquiring customers.
Related Terms
CAC (Customer Acquisition Cost)
The total cost of acquiring a new customer, including marketing and sales expenses. A healthy business has LTV significantly higher than CAC.
ARPU (Average Revenue Per User)
The average revenue generated per user over a specific period. Calculated as Total Revenue / Number of Users. Important for subscription and gaming businesses.
Related Job Categories
Browse All Terms
50 terms