Cycle glossary

Lifetime Value (LTV) is a vital metric in product management that measures the total value a customer generates over their entire relationship with your company. It tells you how much revenue you can expect to earn from a customer during their "lifetime" as a customer.

Imagine you own a donut shop. Lifetime Value is like figuring out how much money you can expect to make from a customer who keeps coming back for donuts every week for years. It helps you understand the long-term financial impact of each customer and guides your decision-making in areas like customer acquisition, retention strategies, and pricing.