What does LTV measure?
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Correct answer: LTV is the predicted revenue that one customer will generate throughout their relationship with a company..
Why this is the answer
LTV (Lifetime Value) measures the total predicted revenue a single customer will generate over the entirety of their relationship with a company. It accounts for repeat purchases, upsells, and retention over time. In HubSpot, LTV helps prioritize high-value customers and informs marketing, sales, and service strategies. It enables forecasting revenue and assessing the long-term impact of customer acquisition efforts. LTV is a forward-looking metric, focusing on potential future revenue rather than immediate transactions.
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