What it is
Lifetime value of a customer
How much revenue a customer generates over their lifetime. Sets the CPA ceiling: if LTV is $90, paying $100 for acquisition only works at a loss.
Example
What it looks like in numbers
Average order $27, purchases per year 3.1, margin 42%. LTV = $27 x 3.1 x 0.42 = $35. The CPA ceiling for one-year payback is $35, not $27.
Related terms
Next to it in the report
In practice
Where this shows up
Pages where LTV is not explained but used — in a channel’s mechanics, in a launch breakdown or in a report.
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