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Pricing & Salesbeginner

Lifetime Value

Definition

See LTV, the total revenue a business can expect from a single customer across their entire relationship.

Why it matters

Understanding LTV is fundamental to knowing how much you can spend to acquire a customer (CAC) and how much investment to make in retention.

Example

A founder's average customer buys her course, joins the membership for 14 months, and purchases her coaching. LTV: £1,847. She can afford £400 CAC and still 4x her investment.

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