What is Lifetime Value (LTV)? A short definition.

Customer lifetime value refers to how much a customer is worth to a business over all of the time they have been a customer. It’s an effective metric as it costs less to keep existing customers than it does to acquire new ones. Therefore, increasing the value of your existing customers is a very effective way to drive growth.

Knowing CLV helps businesses develop strategies to acquire new customers and retain existing ones while maintaining profit margins.