Glossary · Business metrics
Customer Lifetime Value (LTV)
The total revenue expected from a user over their entire relationship with the app.
What is Customer Lifetime Value (LTV)?
Lifetime value (LTV) estimates the cumulative revenue a single user generates before they churn.
It is central to deciding how much you can spend to acquire a user and which monetization model sustains the business.
Customer Lifetime Value (LTV) in context
To understand Customer Lifetime Value (LTV) fully, it helps to know the concepts around it. ARPU, average revenue per user over a period. Churn, the rate at which users stop using or paying for an app. Conversion Rate, the share of users who take a desired action, such as upgrading to paid.
Together these describe how business metrics works in practice for an AI app, and where Customer Lifetime Value (LTV) fits among them.
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