oboloo Glossary

Lifetime Value

oboloo Glossary

Lifetime Value

Lifetime Value (LTV) is a business metric that measures the total value of a customer to a company over the duration of their relationship. It is calculated by looking at how much revenue a customer generates, minus any related costs or expenses. Companies use LTV to determine their return on investment in marketing campaigns and products, and help prioritize acquisition strategies for new and existing customers. This powerful metric can be used to assess the overall health of a business and decide which customers are most valuable in terms of long-term loyalty and repeat purchases. Investing in lifetime value helps companies create more meaningful relationships with customers that result in higher satisfaction, better engagement, and increased profitability.