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Digital marketing terminology
LTV
Customer Lifetime Value
The estimated value a customer contributes across the full relationship.
What is LTV?
The estimated value a customer contributes across the full relationship.
In practical marketing work, customer lifetime value is used to make planning, execution, reporting, or optimization easier to understand.
How is it calculated?
LTV = Average purchase value × purchase frequency × customer lifespan
Practical example
₹800 × 4 purchases × 3 years = ₹9,600 LTV
Where is it used?
Digital Marketing BasicsAffiliate MarketingAnalyticsMobile Marketing
Answer-first FAQ
Common questions about LTV
What does LTV stand for?
LTV stands for Customer Lifetime Value.
What is LTV in simple words?
The estimated value a customer contributes across the full relationship.
How is LTV calculated?
Use this formula: Average purchase value × purchase frequency × customer lifespan.
Where is LTV used?
It is commonly used in Digital Marketing Basics, Affiliate Marketing, Analytics, Mobile Marketing.