Keyword Analysis & Research: customer lifetime value betekenis

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What is customer lifetime value and how to calculate it?

Customer Lifetime Value or LTV is one of the metrics used to measure the growth of a company. By comparing the LTV of a company to the cost of customer acquisition, it can calculate the value of a customer to the business over the period of time that they were associated with them. The LTV helps a company gain and retain highly valuable ...

How do you measure customer lifetime value?

Customer lifetime value formula. LTV = ARPU (average monthly recurring revenue per user) × Customer Lifetime. You can also calculate lifetime value using churn (which is a number you likely have more readily available). LTV = ARPU / User Churn. The higher your user churn, the lower your lifetime value will be.

What you should know about customer lifetime value?

Customer lifetime value only really makes sense if you also take the CAC into account. For example, if the CLV of an average coffee shop customer is $1,000 and it costs more than £1,000 to acquire them (via advertising, marketing, offers, etc.) the coffee chain could be losing money unless it pares back its acquisition costs.

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