How To Calculate (And Improve) Lifetime Value

Lifetime value (LTV) is a significant metric that helps estimate the growth of a company.

By comparing LTV to customer acquisition cost, the results can help make crucial decisions. This might include devising your advertising and marketing budget, for example.

Businesses can use LTV to acquire and retain high-profile customers.

This means more income, thus scaling. But, if customer acquisition costs are higher than LTV, scaling is impossible.

For you to predict and improve customer lifetime value successfully, you’ll need to know how to measure customer lifetime value.

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