Digital Marketing Glossary

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LTV (Lifetime Value)

Estimated revenue a customer will generate for your business during their entire lifetime relationship.

Formula: LTV = (Average Value of a Purchase x Number of Repeat Purchases) x Retention Time Period

Example: If a customer makes 10 purchases at $25 each over 2 years, their LTV is $250 (($25 x 10) x 2 years).

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