Lifetime Value

Lifetime Value (LTV) estimates the total revenue a customer will generate before they churn. The simplest formula multiplies average revenue per user (ARPU) by average customer lifespan. More sophisticated models account for expansion revenue, discounting, and variable churn rates over time.

LTV is most powerful when paired with CAC. If LTV significantly exceeds CAC, the business can afford to invest aggressively in growth. If they are close, margins are thin and retention improvements become the priority.

GenGrowth surfaces LTV data by acquisition channel, enabling teams to double down on content strategies that attract high-value customers rather than simply maximizing visitor volume. Quality of traffic matters more than quantity when LTV is the lens.