When customers are the cornerstone of your business, it’s essential to know and measure what they bring to your company. It costs money to bring in new clients, so determining how much their lifetime value is worth to you while comparing it to the cost of customer acquisition, your business knows how long it will be before you recoup those costs.
What is LTV?
The lifetime value of a customer is how much money they will spend with your company from the start of your relationship to the end of it. There is a simple customer lifetime value formula to determine this. Leveraging your average LTV calculation will help you adjust your marketing efforts while maintaining your bottom line.Continue Reading