Lifetime value
Also called LTV, CLV, customer lifetime value.
The total revenue, or profit, a customer brings over their whole relationship with you.
Lifetime value (LTV, or CLV) adds up what a customer is worth across all their purchases, not just the first. A simple estimate: average order value × orders per customer over a period × gross margin.
Use real repeat rates from your own customers, over a period you have data for, such as 12 months. LTV is what lets you pay more to acquire a customer than their first order earns, as long as the repeat purchases are real.
All 58 terms · Spotted a mistake? Email hello@sporetag.com.