Marketing
LTV
Total revenue from one customer over the whole relationship.
// What it is
Average order value times purchase count, minus servicing costs.
// Why your business should care
Without it, you optimize for cheap one-time buyers who never come back. You want the ones who return.
// Common myth
"Our CPA is too high." Compare it to LTV. €100 CPA at €500 LTV is a great business.
Verdict:
Critical for decisions. Without LTV, your ad spend is a shot in the dark.