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Customer lifetime value (LTV)

Customer lifetime value is the total revenue or profit you expect from a customer over the whole relationship.

Written by Reflective Data experts · updated Oct 5, 2026

It helps decide how much you can spend to acquire a customer. Comparing LTV with customer acquisition cost shows whether growth is profitable.

Simple estimates multiply average order value, purchase frequency and customer lifespan; better ones use cohort data and predictive models.

related

Churn rateCustomer acquisition cost (CAC)Return on ad spend (ROAS)

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