Customer Lifetime Value (LTV)
The total profit a customer is worth over time.
Customer Lifetime Value is the total revenue — or, more usefully, profit — a customer generates across every order they will ever place. It matters because it sets the ceiling on what you can afford to spend acquiring a customer. Pricing ads against the first order alone leaves money on the table; budgeting against profit LTV lets you grow profitably. Estimate yours with the LTV calculator.