◆ marketing
LTV (Lifetime Value)
Total revenue a customer brings over time
What is LTV (Lifetime Value)?
The total revenue a single customer generates during their entire relationship with your brand. In Web3, this could mean token purchases, governance participation, and referrals. If your LTV is 3x your CAC, you have a sustainable business.
How it works
LTV grows at every stage of the customer journey
Key takeaways
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Includes all revenue, not just the first purchase
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Pair with CAC, your LTV:CAC ratio should exceed 3:1
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Segment by cohort for accurate numbers
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Real-world example
A subscriber pays $29/mo for your newsletter and stays 14 months on average. They also buy a $99 course. Their LTV is roughly $505. That number tells you how much you can afford to acquire someone like them.
