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Concept9 min read
Customer Lifetime Value (LTV)
The total gross profit a company expects to earn from a customer over the duration of the relationship. LTV answers the most important question in subscription economics: what is a customer actually worth?
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What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
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