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What is Lifetime Customer Value (LCV)?

A predictive metric that calculates the total revenue expected from a customer throughout the entire business relationship. Critical for optimizing acquisition costs and determining maximum profitable bid strategies in affiliate campaigns.

Examples & Use Cases

Real-world applications and practical implementations

1

SaaS customer paying $100/month with 36-month average retention = $3,600 LCV

2

E-commerce customer with $150 average order value and 4.5 repeat purchases = $675 LCV