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.
Related terms
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