Lifetime Value (LTV) is an essential metric in the field of marketing and customer management . Through this value, it is possible to understand whether the company’s strategies are truly aligned.
Increasing LTV has become a priority for many organizations. The idea is to strengthen customer relationships by promoting actions aimed at improving customer experience, offering loyalty programs, product customization, etc.
Therefore, knowing how to calculate and understand LTV is essential for companies. By having this value, your company will gain new perspectives on customer profitability . To understand more about the subject, keep reading!
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What is lifetime value?
Lifetime Value, or LVT, is the translation for “Customer Lifetime Value”. As the name suggests, this is a metric that measures the total value that a thailand whatsapp number data represents throughout their relationship with a company.
Companies typically use this metric to understand how much value they can expect from a customer over time. This helps inform marketing strategies and investment decisions , aiming for an ever-increasing LVT.
What is the difference between Churn rate, CAC and LTV?
Although they have the importance of visual content marketing for your success meanings, Churn Rate, Customer Acquisition Cost and Lifetime User Value are for different calculations . Below, we will show the main differences between each:
Churn rate
The Churn Rate represents the b2b phone list of customers who stop using a company’s products or services in a specific period.
Because of this, a high churn rate can signal problems with customer retention, directly impacting the financial health and sustainability of the business.
