LTV: Lifetime Value

Marketing Tipps von Stephan

What does LTV mean? LTV stands for Lifetime Value and describes the total value that a customer generates for a company over the entire duration of the business relationship. Where is LTV used? LTV is primarily used in marketing and customer relationship management to better control budgets for customer acquisition (e.g. CAC) and to evaluate the profitability of measures. What is a good LTV? A good LTV depends heavily on the sector, business model and product. As a general rule, the LTV should be significantly higher than the costs of customer acquisition, often at least three to five times the CAC.

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