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