LTV / CLV (Customer Lifetime Value)
The total value a customer brings over the life of the relationship, not just their first purchase.
…Comparing LTV / CLV against acquisition cost is how we prove a campaign is genuinely profitable, not just generating one-time sales.…
What it means
LTV, or Customer Lifetime Value (also written CLV), is the total net revenue a business can expect from a single customer account over the full length of their relationship with the brand.
It accounts for repeat purchases, upsells, and retention — which is why a subscription business with high LTV can often afford a much higher acquisition cost than a one-time-purchase retailer.
Reveals true campaign profitability
LTV shows whether a customer is worth what it cost to acquire them, beyond the first sale.
Justifies acquisition spend
A high LTV can make an aggressive CAC target the right call, not a red flag.
Highlights your best customer segments
Comparing LTV across segments shows which customers to prioritize acquiring more of.
DNA's Take: We model LTV alongside CAC for every client, so budget decisions are based on long-term customer value, not just the cost of the next sale.
Talk to our team