LTV (Lifetime Value)

The Lifetime Value (LTV) is a unit of measurement in online marketing and represents the worth of every single user for a company.

Closely considered the LTV is the total amount of money a company is earning by a customer within his “customer life” i.e. as long as the person is using a service or brand of this company. So basically the term “Lifetime Value” is not just referring on the current value of a customer for a company, but also includes a forecast of how much the company is going to earn with this customer in the future. The LTV is an important unit for customers to use their ressources for customer relationship management as efficient as possible.

The Lifetime Value is an important measurement as it encourages companies to shift their focus from quarterly profits to the long-term health of their customer relationships.