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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
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