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What's LTV? Google says loan to value but that doesn't seem to make sense here?
by personjerry 10y ago
What's LTV? Google says loan to value but that doesn't seem to make sense here?
- ductionist 10y ago"Lifetime Value", the dollar value of a user over the entire time of that user's installation of your app.
- qeternity 10y agoOtherwise known as NPV...
- ABCLAW 10y agoNit: CLTV/CLV/LTV calculations ignore acquisition costs, and are generally used to determine bounds for acquisition costs/investments - They are, however, essentially calculated as the NPV of the customer post-acquisition, which I believe was your point. NPV calculations, used to determine the value of the entire pipeline, include them.
- orasis 10y agoMost people that I know don't discount the time value of money on their LTV calculations so, in practice LTV != NPV. But yes, NPV would provide a more accurate calculation. (Edit: to be clear on definitions, NPV is "Net Present Value")