Business management glossary/Customer lifetime value (LTV)

Customer lifetime value (LTV)

General

Projected revenue a customer generates over the full relationship with the company. LTV helps businesses decide how much to invest in acquisition and retention, and a healthy LTV-to-CAC ratio is typically 3:1 or higher.

Customer lifetime value (LTV)

Related terms

Customer acquisition cost (CAC)Customer successEmployee retentionProject profitabilityForecast at completion (FAC)ROI (Return on Investment)

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