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Lifetime Value (LTV)

By Dan Kurtz Updated 1 min read

Lifetime value is the total revenue a customer is expected to generate for a business over the entire relationship. Used to determine sustainable customer acquisition cost, prioritize retention investments, and forecast growth.

LTV modeling matters more with AI marketing because AI can now segment customers by predicted LTV and route them accordingly. High-LTV segments get premium attention. Low-LTV segments get automated handling.

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