---
updatedAt: 2025-10-26T13:11:49.000Z
agentTools:
  projectIndex: https://triplewhale.readme.io/llms.txt
---

# Lifetime Value (LTV)

ltv

# Overview

Lifetime Value (LTV) represents the average order revenue per customer, for orders placed within the selected timeframe.

> 📘 LTV = Order Revenue / Unique Customers

The calculation is based on data from the [Orders](https://triplewhale.readme.io/docs/orders-table) table.

> 🚧 Alternative LTV Definitions
>
> The formula above is a basic definition that matches the LTV tile on the Summary page. However, LTV can also be calculated using more advanced methods—such as cohort-based models, custom time ranges, or by specific acquisition channels.
>
> See for example: [Lifetime Value by Day Range (60, 90, 180, 365)](https://triplewhale.readme.io/docs/sql-example-lifetime-value-by-day-range-60-90-180-365#/)
>
> To get an LTV value based on your custom parameters, ask Moby.

### Detailed Breakdown

The formula above is derived from the following components:

Order Revenue = `SUM(order_revenue)` --> [Orders](https://triplewhale.readme.io/docs/orders-table) table\
Unique Customers = `uniq(o.customer_id)` --> [Orders](https://triplewhale.readme.io/docs/orders-table) table

# Insights and Actions

Lifetime Value (LTV) shows the average revenue generated per customer, guiding decisions on acquisition spend and retention strategy:

* **Assess Acquisition Profitability**: Compare LTV to your cost per acquisition; if LTV exceeds acquisition cost, campaigns are generating sustainable value.
* **Prioritize High-Value Segments**: Segment customers by LTV to focus retention efforts (e.g., loyalty programs or VIP offers) on your most profitable cohorts.
* **Boost Repeat Purchases**: Use LTV trends to test cross-sell, upsell, and subscription offers aimed at extending the customer relationship and increasing revenue per buyer.

### Related Metrics

* **Blended CPA**: Provides the average cost to acquire a customer, serving as a benchmark to ensure LTV outweighs acquisition spend.
* **Returning Customers Percent**: Indicates the share of repeat buyers, offering context for how repeat purchasing drives LTV growth.
* **Average Order Value (AOV)**: Shows revenue per transaction; increasing AOV directly raises LTV when purchase frequency remains constant.

# Example Use

### Prompt

> Show me the average LTV for customers over the past year

### Response

<Image border={false} src="https://files.readme.io/1b5795964867a7c1914889396b6af2aad6c45fdaeabe2bc67b46501ffa12e135-image.png" />

### Query

```sql
SELECT
  COALESCE(
    SUM(ot.order_revenue) / NULLIF(uniq (ot.customer_id), 0),
    0
  ) AS ltv
FROM
  orders_table AS ot
WHERE
  ot.event_date BETWEEN CURRENT_DATE()  - 365 AND CURRENT_DATE()  - 1;
```