Glossary of Terms

Lifetime Value (LTV)

The lifetime value is the total amount of money that a customer will spend with your product, service, or event.

LTV = Average purchase amount x frequency of purchase x customer lifecycle

Net Promoter Score (NPS)

A score that determines how good your product can be, which is calculated by the number of people who answer the question “How likely are you to recommend this to another person?” on a scale of 1-10

NPS = Percentage of promoters (9/10) - percentage of detractors (1-6)

Return on Investment (ROI)

A way to determine how valuable an exercise can be. If you put in $1 for marketing, how many dollars will you earn?

ROI = Profit / expenses