Why Lifetime Value Is The Most Important Metric For Measuring Clients

As a marketer and business owner, I know just how important it is to keep your eye on metrics related to your marketing campaigns, revenue and overall business. From cost per lead to conversion rates, understanding the health of your company comes down to a lot of different numbers.

Unfortunately, those numbers can quickly start to run together. When you have so much to track and analyze, it can become difficult to know exactly what they’re telling you. You can waste a lot of time monitoring analytics without learning much.

Instead of trying to track it all, I’ve found that focusing on just a few key metrics can help you understand how your marketing is performing. One of my favorites is lifetime value (LTV). The lifetime value of a customer is the amount of money a customer contributes over their entire life as a customer.

Let’s take a look at why LTV is so important for your business, how you can find it and how it should influence your marketing and business decisions.

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