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Customer Lifetime Value (CLTV / LTV)

Definition

The total net revenue a business expects to earn from a single customer over the entire duration of the relationship. LTV is driven by average revenue per user, gross margin, and retention rates, and is directly influenced by brand and relationship intangibles.

Related Terms

Cap Table (Capitalisation Table) Capital Deepening Capital Expenditure (CapEx) Capital Intensity Ratio Capitalisation of Intangibles

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