LTV, or lifetime value, is a measure of the total value a customer brings to a business over the course of their relationship. This includes not only their purchase history, but also any additional revenue they may generate through referrals or other forms of advocacy.
There is some debate over whether acquisition cost should be included in LTV calculations. Some argue that it should be, as it is an important part of the total cost of acquiring and keeping a customer. Others argue that it should not be included, as it does not directly contribute to the lifetime value of a customer. Ultimately, the decision comes down to what makes the most sense for your business and your particular goals.