LTV

Metrics

Lifetime Value — the total revenue or profit a customer brings over their whole relationship with the product, not just the first purchase. It's what justifies a high CPA: if LTV comfortably clears acquisition cost, you can outbid competitors and still profit. Verticals with rebills or repeat orders — nutra, dating, gambling — live or die on getting LTV right.

Example

A subscriber worth $12/month who stays 8 months has a $96 LTV.

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