LTV (Customer Lifetime Value)
Total revenue (or gross profit) one customer generates across their entire lifetime.
Last updated: 2026-05-04
Definition
LTV = average order value × purchase frequency × customer lifespan, or for subscriptions: ARPU × gross margin / churn rate. The denominator (LTV / CAC) tells you whether your acquisition economics work. <3:1 is bad; >3:1 is good; >5:1 means you should spend more on acquisition.
How it applies in India
Indian DTC LTV depends heavily on category — beauty/wellness LTV ₹3-8K, electronics ₹5-15K, fashion ₹2-6K.
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