What is LTV (Customer Lifetime Value)?

The key metric that determines how much you can spend to acquire customers profitably.

Customer Lifetime Value (LTV) is the total revenue a business can expect from a single customer throughout their entire relationship.

How to Calculate LTV

LTV = AOV × Purchase Frequency × Customer Lifespan

Example: $80 AOV × 4 purchases/year × 3 years = $960 LTV

LTV Benchmarks by Industry

  • Skincare: $300-600
  • Supplements: $400-800
  • Fashion: $250-500
  • Luxury: $500-2000+

How Quiz Funnels Increase LTV

  • Better product matches: Right products = higher satisfaction = longer relationships
  • Personalized follow-up: Use quiz data for targeted email campaigns
  • Reduced returns: Confident purchases stick

Quiz-acquired customers show 30-50% higher LTV than standard traffic.

See How Quizzes Increase LTV

Experience personalized recommendations that build lasting relationships.

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Related Terms

CAC

Customer acquisition cost.

AOV

Average order value.

Quiz Funnel

Interactive product recommendations.

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