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What is LTV?

Customer Lifetime Value (LTV) - the total revenue a customer will generate over their entire relationship with your business. It is calculated by multiplying average order value by purchase frequency by customer lifespan.

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GLOSSARY TERM
LTV

Customer Lifetime Value

the total revenue a customer will generate over their entire relationship with your business. It is calculated by multiplying average order value by purchase frequency by customer lifespan.

FORMULA
LTV = Average Order Value x Purchase Frequency x Customer Lifespan

Why LTV matters

LTV matters because it tells you how much each customer is worth, which determines how much you can spend to acquire them. Without tracking this metric, you're making marketing decisions in a vacuum - spending money without knowing whether it's generating a return. With proper tracking, you can make confident, data-driven decisions about where to invest and how to scale.

EchoMedia builds the infrastructure that tracks LTV automatically and displays it in your reporting dashboard. You always know your numbers in real time, without manually pulling reports or guessing.

IN CONTEXT

How LTV fits into your system

LTV is one of many metrics that EchoMedia tracks as part of your customer acquisition infrastructure. Rather than tracking metrics in isolation, we monitor them as a connected dashboard - because the relationship between metrics (like CAC and LTV) tells you more than any single number on its own.

When you book a strategy call with EchoMedia, we'll set up comprehensive tracking and reporting that includes LTV alongside every other metric that matters to your business. You get full visibility, in real time, without the manual work.

FAQ

Frequently Asked Questions

LTV stands for Customer Lifetime Value. It is the total revenue a customer will generate over their entire relationship with your business. It is calculated by multiplying average order value by purchase frequency by customer lifespan.

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Related Resources

Explore more customer acquisition topics from EchoMedia's knowledge base.

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