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Lifetime Value
Lifetime value (LTV) is the total revenue a business can expect from a customer over the entire relationship. It helps companies understand how much to spend on acquiring and retaining customers.
A higher LTV means stronger profitability.
LTV looks beyond one purchase. For example, a customer may spend $100 now but $2,000 over five years. Knowing this helps businesses decide how much to invest in marketing and retention.
Companies with higher LTV can afford better customer service and loyalty programs because each customer is more valuable long term.
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Lifetime Value
Lifetime value (LTV) is the total revenue a business can expect from a customer over the entire relationship. It helps companies understand how much to spend on acquiring and retaining customers.
A higher LTV means stronger profitability.
Read More