LIfetime Value (LTV) is the estimated revenue a business can generate from a customer during their lifetime. Its an important metric in business as it helps to determine how big you should spend on marketing budget. Put simply if it’s going to cost you RM25 to acquire a customer, but the customer is going to generate a one time sales of RM20, then maybe it’s not a good business spending.
Learn more about Calculating Lifetime Value by checking out this infographic by Kissmetric.
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Source: How To Calculate Lifetime Value