Post by account_disabled on Dec 5, 2023 5:29:24 GMT 1
One of the reasons is the possibility of measuring almost everything in a marketing and sales strategy. Among the elements that you can (and should) know well, is the lifetime value – which answers the question that started this article. In practice, this metric can teach you a lot about various aspects of the company and help you in the way you organize yourself with the goal of guaranteeing a healthier future for your business. Do you want to know more information about lifetime value and how to use this indicator on a daily basis to make better decisions? So, join us! What is lifetime value? The translation of the English term “lifetime value” or LVT is lifetime value and can be easily understood when we place it in the proper context.
This metric estimates the lifetime net profit of a client within the company. The lifetime value Phone Number List of a customer refers to how much money they will offer your company throughout their relationship with your brand. Wait to? Well, let's give an example so that the issue is easier to understand: Consider that one of your customers made four purchases in two years, and then never bought anything again. Each purchase had a different value. The first was $25.00; The second for $100.00; The third for $120.00; And the last one is $80.00. Thus, you could say that the lifetime value, or LTV, of that person was $325.00, which is the sum of all the amounts spent by them during the entire period that they were your client.
Naturally, the idea of this indicator is not to make a separate account for each client. That would be quite slow and inefficient. The objective is to analyze all clients, in a general way, and find the midpoint of spending values and length of stay. From that point on, adjustments will be made, both to increase value and to make customers stay longer before leaving the product or service and looking for another alternative. Why is this indicator essential for the health of your business? It doesn't take much thinking to understand how LTV is essential to the health of your business. Knowing precisely how much money, approximately, customers spend and how long they use your product or service can help: Define the maximum marketing budget to avoid spending too much with acquisition and losing money in the long term; Know how much revenue you can expect in the coming months, based on sales history and LTV; Find specific flaws that lead customers to abandon service early; and Find undertapped opportunities to improve acquisition and retention.
This metric estimates the lifetime net profit of a client within the company. The lifetime value Phone Number List of a customer refers to how much money they will offer your company throughout their relationship with your brand. Wait to? Well, let's give an example so that the issue is easier to understand: Consider that one of your customers made four purchases in two years, and then never bought anything again. Each purchase had a different value. The first was $25.00; The second for $100.00; The third for $120.00; And the last one is $80.00. Thus, you could say that the lifetime value, or LTV, of that person was $325.00, which is the sum of all the amounts spent by them during the entire period that they were your client.
Naturally, the idea of this indicator is not to make a separate account for each client. That would be quite slow and inefficient. The objective is to analyze all clients, in a general way, and find the midpoint of spending values and length of stay. From that point on, adjustments will be made, both to increase value and to make customers stay longer before leaving the product or service and looking for another alternative. Why is this indicator essential for the health of your business? It doesn't take much thinking to understand how LTV is essential to the health of your business. Knowing precisely how much money, approximately, customers spend and how long they use your product or service can help: Define the maximum marketing budget to avoid spending too much with acquisition and losing money in the long term; Know how much revenue you can expect in the coming months, based on sales history and LTV; Find specific flaws that lead customers to abandon service early; and Find undertapped opportunities to improve acquisition and retention.