What is LTV

31 Oct 2025 Updated: 31 Oct 2025
By Bill Robertson
Glossary
LTV (Lifetime Value) is the total value a customer brings to your business over their entire time using your product or service.

What it includes:

  • All deposits, purchases, or subscription payments.
  • Repeat purchases and renewals.
  • Costs for retention and support are subtracted.

Why it matters:

  • It tells you how much you can afford to spend on getting one customer.
  • Helps you measure traffic quality.
  • Useful for marketing strategy and budgeting.

Simple formula:
 LTV = Average revenue per user × Average customer lifespan

Example:  If a player deposits $50 per month and stays active for 6 months, their LTV would be around $300.

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