E-commerce

What is LTV?

Customer Lifetime Value · القيمة الدائمة للعميل

Quick answer

LTV is the total revenue you expect from one customer over the whole relationship, not just their first order.

The formula

LTV ≈ Average order value × Orders per year × Years as a customer

Example in JOD

A customer spends 40 JOD per order, orders 3 times a year and stays 2 years. LTV ≈ 40 × 3 × 2 = 240 JOD.

Try it: LTV calculator

–JOD

Related terms

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