Formula
Revenue LTV = Average order value × Purchases per period × Customer lifespan. Gross-profit LTV = Revenue LTV × Gross margin.
Estimate customer lifetime revenue and gross-profit value from order value, purchase frequency, lifespan and margin.
Estimate revenue generated during the expected customer relationship and optionally convert it to gross profit.
Revenue LTV = Average order value × Purchases per period × Customer lifespan. Gross-profit LTV = Revenue LTV × Gross margin.Estimate customer lifetime revenue and gross-profit value from order value, purchase frequency, lifespan and margin.
Revenue LTV = Average order value × Purchases per period × Customer lifespan. Gross-profit LTV = Revenue LTV × Gross margin.
Estimate revenue generated during the expected customer relationship and optionally convert it to gross profit.