L
LTV (Customer Lifetime Value)
The total revenue a customer generates over their entire relationship with your brand.
LTV WTF → LTVPedia
LTVPedia
A Glossary of the Revenue Metrics & Terms Growth Professionals Need to Know To Understand the Health of Their Business.
21 Terms
14 Categories
∞ Growing
C
CAC (Customer Acquisition Cost)
The total cost of acquiring a new customer, including all marketing and sales expenses.
L
LTV:CAC Ratio
The ratio of customer lifetime value to acquisition cost — the ultimate measure of growth efficiency.
R
ROAS (Return on Ad Spend)
Revenue generated for every dollar spent on advertising — the core metric for paid media efficiency.
C
Churn Rate
The percentage of customers who stop buying from you over a given period.
A
AOV (Average Order Value)
The average amount a customer spends per order — a key driver of revenue per transaction.
A
ARPU (Average Revenue Per User)
The average revenue generated per active user over a specific time period.
C
Contribution Margin
Revenue minus all variable costs — the true profit from each sale after accounting for COGS, shipping, and transaction fees.
R
Retention Rate
The percentage of customers who continue purchasing from your brand over a given period.
M
MRR (Monthly Recurring Revenue)
The predictable, recurring revenue your business earns each month from subscriptions.
C
Cohort Analysis
A technique for tracking groups of customers acquired in the same period to understand how behavior changes over time.
P
Payback Period
The number of months it takes to recover the cost of acquiring a customer through their purchases.
G
Gross Margin
The percentage of revenue remaining after subtracting the direct cost of goods sold.
N
Net Revenue
Total revenue after subtracting returns, refunds, and discounts — the real top-line number.
B
Blended ROAS
Total revenue divided by total ad spend across all channels — the bird's-eye view of advertising efficiency.
M
MER (Marketing Efficiency Ratio)
Total revenue divided by total marketing spend — a holistic view of marketing efficiency beyond ads.
U
Unit Economics
The direct revenues and costs associated with a single customer or transaction — the foundation of business viability.
D
DTC (Direct-to-Consumer)
A business model where brands sell directly to end consumers, bypassing traditional retail intermediaries.
E
Email Deliverability
The rate at which your marketing emails successfully reach subscribers' inboxes rather than spam folders.
F
Funnel Conversion Rate
The percentage of users who complete a desired action at each stage of the marketing or sales funnel.
W
Win-back Campaign
A targeted marketing campaign designed to re-engage lapsed customers and bring them back to purchase.
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