LTV (Customer Lifetime Value)
💡 Quick Definition: The total revenue a business can reasonably expect to earn from a single customer throughout their entire relationship.
Detailed Explanation & Workplace Application
LTV guides how much a business can afford to spend on customer acquisition. In subscription SaaS and D2C brands, increasing average order value (AOV) and reducing monthly churn directly expands LTV.
Practical Syntax / Framework Formula
LTV = (Average Purchase Value × Purchase Frequency) × Average Customer Lifespan