What category does Lifetime Value (LTV) belong to?

Lifetime Value (LTV) belongs to the "Concepts" category in personal knowledge management and productivity.

What are the key topics related to Lifetime Value (LTV)?

Key topics related to Lifetime Value (LTV) include: businesses, metrics, revenues.

What are alternative names for Lifetime Value (LTV)?

Lifetime Value (LTV) is also known as: LTV, Customer lifetime value, CLV.

Lifetime Value (LTV)

The total revenue expected from a customer over the entire relationship.

Also known as: LTV, Customer lifetime value, CLV

Category: Concepts

Tags: businesses, metrics, revenues

Explanation

Lifetime Value (LTV) predicts the total revenue a business can expect from a single customer account throughout their relationship. It's crucial for understanding how much you can spend to acquire customers (CAC) while remaining profitable. LTV increases with retention, upsells, and referrals. For creators and knowledge entrepreneurs, understanding LTV shifts focus from one-time sales to building lasting relationships, creating product ecosystems, and maximizing value per audience member over time.

Related Concepts

Subscription Business Model
Product Market Fit (PMF)

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