What is the difference between total LTV and predicted lifetime value (pLTV)?

• A. Total LTV measures past revenue, while pLTV predicts future revenue based on transactions and behaviors
• B. Total LTV predicts future revenue, while pLTV measures past revenue
• C. Total LTV and pLTV both only measure past revenue
• D. Total LTV and pLTV both only measure future revenue

Answer: (A)

The main idea is distinguishing historical value from forecasted value. Total LTV captures revenue that has already been earned from a customer—it's a historical, up-to-date measure of how much value they’ve produced so far. Predicted lifetime value (pLTV) estimates how much revenue the customer will generate in the future, using models that analyze their transactions and ongoing behaviors to forecast future spend and loyalty.

So the statement that total LTV measures past revenue while pLTV predicts future revenue based on transactions and behaviors is the best fit. This reflects historical versus forward-looking value: total LTV tells you what’s happened to date, and pLTV informs how much you expect to gain going forward, guiding budgeting and targeting.