Lifetime Value (LTV) is a metric that captures the profits a customer would generate over a future time window. LTV is forwarding-looking based on predictive models. In contrast, current profit captures observed profit to date. Customer Lifetime Value (CLV) can capture enough revenue and cost, offering insights for making the right decision. Many world-class marketing organizations leverage LTV in their marketing programs.
There are Baseline LTV modeling and Incremental LTV modeling, and you can choose the one best fits your business goal.
