LTV (Lifetime Value)

LTV (Lifetime Value) is the total revenue — or profit — a business can expect from a single customer across the entire relationship. It reframes growth around long-term worth rather than the first sale, which is what makes acquisition spend justifiable. Compared against CAC, LTV sets the ceiling on what you can profitably pay to acquire a customer. Improving LTV through retention and expansion is often cheaper than lowering CAC.