Customer Lifetime Value (LTV)
Total revenue expected from a customer over their entire relationship with the marketplace
LTV = Average Order Value × Purchase Frequency × Average Customer Lifespan
Customer Lifetime Value (LTV) estimates the total worth of a customer to the business over the entire period of their engagement. It helps in understanding the long-term value of customer relationships.
Comparing LTV with CAC can assess the profitability of acquiring new customers. A higher LTV indicates more revenue per customer, guiding investment in customer retention.
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Gross Merchandise Volume (GMV)
Total value of all goods sold on the marketplace over a specific time period
Number of Active Sellers
Total number of sellers who have listed or sold items in a specific period
Number of Active Buyers
Total number of buyers who have made purchases in a specific period
Average Order Value (AOV)
The average monetary value of each order placed on the marketplace
Take Rate
Percentage of the transaction value that the marketplace retains as revenue