Marketing glossary

What is LTV (Customer Lifetime Value)?

LTV (Customer Lifetime Value): The total revenue (or profit) a business can expect from one customer over the entire relationship.

Knowing LTV tells you how much you can afford to spend acquiring a customer. Businesses with high repeat purchase rates can profitably spend more to win each new customer.

CAC (Customer Acquisition Cost)The total cost of winning one new customer, including ad spend, agency or team costs, and tools.
ROAS (Return on Ad Spend)Revenue generated for every dollar spent on ads. A ROAS of 4 means $4 in revenue for every $1 of ad spend.

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What is LTV (Customer Lifetime Value)?

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