What is lifetime value?
Lifetime value (LTV) is the total revenue a customer brings in over their whole relationship with your business, not only their first purchase.
Lifetime value adds up all the money a customer spends with you over time. In GA4, it is calculated per user from their purchases and other revenue since their first visit, and the user lifetime exploration can show it by acquisition source. Outside analytics, businesses estimate LTV from average order size, how often customers buy and how long they stay.
Why it matters for your business: Knowing lifetime value tells you how much you can afford to spend to win a new customer, especially for repeat services.
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