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Showing posts from October, 2025

Customer Lifetime Value (CLV) or Lifetime Value (LTV), Lifetime Customer Value (LCV)

In marketing, LTV (Lifetime Value), also known as Customer Lifetime Value (CLV), is a metric that predicts the total revenue a business can expect to receive from a single customer over their entire relationship with the company. LTV helps businesses understand the long-term value of their customers, guiding decisions on marketing strategies, customer acquisition costs , and strategies to improve customer retention and profitability.  Why LTV is Important Informed Marketing Strategies: LTV helps businesses understand which marketing campaigns attract the most valuable customers, allowing them to optimize their spending. Profitability: By measuring the total revenue from a customer over their lifetime, businesses can more accurately assess long-term profitability. Customer Acquisition Cost (CAC): LTV is used to evaluate the return on customer acquisition costs, ensuring that the cost to acquire a customer does not exceed their lifetime value. https://www.thedigitalorbis.com/2025/10/...