What is LTV?
LTV stands for Lifetime Value, which is a metric used in marketing and analytics to measure the total value that a customer is expected to bring to a business throughout their lifetime as a customer.
It is calculated by adding all revenue generated by a customer, from the day of their first order to the present. It is also possible to calculate the average LTV for a given cohort by dividing the average LTV by the number of customers in the cohort.
Where to find it?
LTV is an important metric because it helps businesses to understand the long-term value of their customers and to make informed decisions about how much to invest in customer acquisition versus customer engagement (repeated purchases over time).
You can find out about the LTV at different places in Quantic Factory: