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Stop 08 · Marketing Analytics & DataTopics · 9/11

Customer Lifetime Value (LTV)

Part of the Digital Marketing Roadmap

In short

The total revenue (or profit) expected from a customer over their entire relationship with the business — paired with CAC, it tells you whether your growth is actually sustainable.

How to learn this

  1. 1Calculate a rough LTV for a hypothetical subscription product using average order value and retention.
  2. 2Learn the commonly cited healthy benchmark (LTV:CAC around 3:1) and why it's a rule of thumb, not law.
  3. 3Understand why a growing customer base can still mean a dying business if this ratio is broken.

More topics at this stop

Google Analytics 4 (GA4) FundamentalsUTM Parameters & Campaign TrackingMarketing Funnels & Conversion TrackingAttribution ModelsMarketing KPIs & MetricsDashboards for Marketing (Looker Studio)Cohort Analysis for MarketingCustomer Acquisition Cost (CAC)ROAS & ROI CalculationBasic SQL for Marketers

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