Lifetime Value (LTV)
Estimated total revenue a customer generates over their relationship with the marketplace.
Lifetime Value (LTV) estimates the total revenue a customer will generate over their relationship with the marketplace. It's calculated by multiplying the average purchase value, purchase frequency, and customer lifespan.
Understanding LTV helps in making informed decisions about marketing spend and customer retention strategies. A higher LTV can justify higher CAC, balancing acquisition costs with long-term revenue.
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Take Rate
Percentage of each transaction that the marketplace retains as revenue.
Time to Fill
Average time it takes for a listing to be fulfilled or matched on the platform.
Gross Merchandise Volume (GMV)
Total value of goods or services sold through the marketplace over a specific period.
Customer Acquisition Cost (CAC)
Average cost incurred to acquire a new customer.
Lifetime Value (LTV)
Estimated total revenue a customer generates over their relationship with the marketplace.