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There are two ways to grow revenue: acquire new customers and increase the lifetime value (LTV) of existing customers. Most businesses focus on customer acquisition. But the biggest profits come from increasing LTV. #LTV #RevenueGrowth #Ecommerce #DigitalMarketing

🧐 Did You Know? 🧐 📈 Lifetime Value (LTV) The total revenue a business can expect from a single customer over their lifetime. Understanding LTV helps you: 💰 Optimize Marketing Spend: Invest wisely by knowing the value of each customer. 🔄 Enhance Customer Retention: Focus on strategies that increase long-term value. 📊 Forecast Growth: Plan for the future with accurate revenue predictions. Follow #Deckez for more interesting facts like this! 💡✨ #LifetimeValue #LTV #BusinessGrowth #MarketingStrategy #PresentationTips

LTV:CAC ratio is a key metric used by businesses to evaluate the efficiency and effectiveness of their marketing and sales efforts. It compares the lifetime value of a customer (LTV) to the cost incurred in acquiring that customer (CAC). A healthy LTV:CAC ratio is indispensable for sustaining growth, as it ensures profitable customer acquisition and long-term value extraction 💪 At Fourmeta Agency, we specialise in helping businesses assess and improve these vital metrics. To schedule a consultation with us today, visit our website! 👇 https://lnkd.in/dCj_Guwd #LTV #CAC #CustomerAcquisition #BusinessMetrics #CustomerLifetimeValue #MarketingROI #DataAnalysis

Is the Customer Lifetime Value (LTV) the most important metric in measuring your ROI? It depends. Here's a quick guide that I follow: ✅ When to Use LTV: 1. Subscription or Repeat Purchase Models: Essential for capturing the full value of recurring customers. 2. High Customer Acquisition Costs: Helps ensure you're investing in channels that attract high-value customers. 3. Customer-Centric Strategies: Best for campaigns that prioritize customer loyalty and retention. 🚫 When Not to Use LTV: 1. Short-Term Campaigns: For one-off promotions, focus on immediate returns like CPA or ROAS. 2. New Product Launches: With limited data, early-stage metrics like initial sales are more relevant. 3. Transactional Businesses: If your model relies on single transactions, LTV may not provide meaningful insights. What else should I add? #LTV #MarketingMetrics #PerformanceMarketing #DataDrivenMarketing

What Is Customer Lifetime Value? How to Calculate and Increase your LTV? More details & link are in the Comment Section. #CustomerLifetimeValue #LTV #CustomerRetention #Ecommerce #DigitalCommerce #CustomerRelationshipManagement #CustomerExperience #CustomerEngagement #RevenueGrowth #RetentionStrategy #EcommerceSuccess

How Much is a Customer Really Worth to Your Business? Your #Customer_Lifetime_Value (LTV) isn’t just about today’s sales—it’s about the total revenue a customer brings over their entire relationship with your business. If your LTV exceeds your Customer Acquisition Cost (CAC), your business is on the right track. So, how can you boost LTV without adding extra costs? #Key_Concept: Lifetime Value (LTV) LTV estimates the total revenue a customer generates over time. It's vital for knowing how much to invest in acquiring customers. #LTV_Formula: LTV = (Average Purchase Value) × (Number of Purchases per Year) × (Average Customer Lifespan) #Example: - Average Purchase Value: Sh 2,000 - Purchases per Year: 12 - Customer Lifespan: 3 years LTV = 2,000 × 12 × 3 = Sh 72,000 #How_to_Increase_LTV: 1. #Improve_retention by extending the customer lifespan eg from 3 to 4 years, boosting LTV to Sh 96,000. (that's an extra Sh 24,000) 2. #Increase_purchase_frequency, for example, encouraging 2 visits per month. 3. #Upsell by offering additional services to raise the average purchase value. Boosting LTV helps grow your business without needing more resources. #BusinessMetrics #CustomerLifetimeValue #SMEGrowth #SMEsKenya #everyshillingcounts #SentiCounts

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Lifetime Value (LTV), also known as Customer Lifetime Value (CLV or CLTV), is a metric that estimates the total revenue a business can expect to earn from a single customer over the entire duration of their relationship with that customer. A higher LTV suggests that a customer is more valuable to the company, justifying higher spending on acquisition and retention. I hope my video has added value to your business! Stay tuned for more insightful videos over the next 28 days. #CustomerLifetimeValue #LTV #BusinessGrowth #CustomerRetention #MarketingStrategy #CustomerSuccess #RevenueGrowth #CustomerExperience #BusinessInsights #30DayChallenge

Track Key Metrics Religiously: Use data-driven insights to measure performance. Metrics such as customer acquisition cost (CAC), lifetime value (LTV), and churn rate are essential. #DataDriven #KPIs #BusinessMetrics #AyoShote #AyoShoteSpeaks

Ever wondered how to figure out the lifetime value of a customer? Here are 3 easy ways with simple examples: 🟦 Gross LTV - Getting Started Formula: Gross LTV = Avg Order Value × Purchase Freq × Avg Customer Life Span Example: If customers spend $50 per month, shop every month, and stay for a year, the Gross LTV is $600. Perfect for: ·      Newbies in customer insights. ·      Exploring profit margins and acquisition costs. 🟦 Net LTV - Focusing on Profits Formula: Net LTV = (Avg Order Value × % Profit Margin) × Purchase Freq × Customer Life Span Example: With a 20% profit margin and $60 Avg Order Value, the Net LTV is $120 for customers staying a year. Ideal for: ·      Understanding profit margins and costs. ·      Checking ROI for different customer segments. 🟦 Traditional LTV - Adding a Bit of Complexity Formula: Traditional LTV = Avg Profit Margin per customer lifespan × ((Customer Retention Rate) ÷ (1+(Discount Rate - Customer Retention Rate))) Example: If your business often upsells, has a 25% retention rate, and offers a 10% discount, the Traditional LTV comes into play. Best for: ·      Businesses with upselling strategies. ·      Handling fluctuating customer revenues. ·      SaaS companies embracing tradition in LTV. #LTV #SimpleMetrics #LifetimeValue