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Glossary

Customer Lifetime Value (LTV)

The total gross profit expected from an average customer over their lifetime.

Lifetime value estimates how much profit a customer generates across their whole relationship with a business — average revenue times gross margin times how long they stay.

Raising retention (lowering churn) increases LTV without acquiring anyone new, which is why it's often the highest-leverage growth metric.

Put it into practiceTry the Customer Lifetime Value (LTV) CalculatorRun your own numbers in seconds — free and private.

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