Customer lifetime value (LTV)
DefinitionGrowth
Customer lifetime value (LTV)
Customer lifetime value: the profit a customer generates over their whole relationship with the brand, discounted to today. The number that decides how much CAC you can afford, and the first casualty when brands over-discount to acquire.
Evidence from the library
Brand creates value through cheaper acquisition, more value per customer, and a moatPrinciple3.21% vs 4.43%Connected TV now delivers roughly three quarters of Linear TV's long-term brand effectStat63%Long-term brand equity drives 63% of LLM visibility.Stat21% vs 10.9%Challenger brands convert loyalty into profit more reliably than penetrationStat16 of 17 categoriesThe fewer buying situations a customer links to your brand, the more likely they are to leaveStat
Source
Marketing Definitions
standard growth and unit-economics practice
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