Lifetime Value (LTV) is a metric that shows how much money a customer will bring in over the course of their entire relationship with your company.
Lifetime Value is calculated by multiplying the average revenue per user (ARPU) by the customer's average lifetime (in months or years).
For example, if your ARPU is $10 and your average customer lifetime is 6 months, your LTV would be $60.
The lifetime value of a customer is a critical metric that can be used to determine the profitability of your company's products and services.
Lifetime value can be used to determine the profitability of a single customer, or the profitability of a certain product or service.