Analytics and results

LTV

Also known as: Lifetime Value · CLV · customer value

An estimate of customer relationship value over a defined period using a revenue or margin model.

A practical example

A company analyzes repeat purchases over several periods.

What should I know?

Revenue-based LTV is not comparable to margin-based LTV.

Analytics and results in practice

Before comparing numbers, check definitions, periods, sources, and denominators. Separate observation from proof of an action's impact. A metric should support business decisions, not just look good in a report.

Related Semly features

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Related terms

CACThe cost of acquiring a customer under a model including specified marketing and sales expenses.RetentionMaintaining customer activity or relationships over successive periods.EstimationAn approximate value calculated from available data and assumptions.

Documentation and further reading

Definition prepared by Semly. Standards and behavior are described by their creators:

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