Marketing & Acronyms

LTV (Lifetime Value)

Quick Definition

LTV is the total revenue a customer generates over the lifetime of their relationship with your business.

In context

Critical context for evaluating marketing spend. A Toronto dental patient with C$4,000 LTV justifies far higher CAC than a C$50-per-purchase ecommerce customer. Calculate LTV by industry, segment, and acquisition channel.

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Related terms

ROI (Return on Investment)

ROI is profit generated relative to investment, typically expressed as a percentage.

North Star Metric

A North Star Metric is the single metric a company chooses as its primary indicator of customer-value delivery — used to align all teams around a shared goal.

CLV / CLTV (Customer Lifetime Value)

CLV (or CLTV) is another name for LTV — the total revenue a customer generates over their relationship with your business.

ROAS (Return on Ad Spend)

ROAS is revenue generated per dollar of advertising spend, expressed as a multiple (4x ROAS = C$4 revenue per C$1 spent).

D2C (Direct-to-Consumer)

D2C refers to brands that sell directly to consumers without traditional retail intermediaries.

B2C (Business-to-Consumer)

B2C refers to businesses selling directly to individual consumers.

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