Knowledge base glossary

What is Lifetime Value (LTV)? A short definition.

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Customer lifetime value refers to how much a customer is worth to a business over all of the time they have been a customer. It’s an effective metric as it costs less to keep existing customers than it does to acquire new ones. Therefore, increasing the value of your existing customers is a very effective way to drive growth.

Knowing CLV helps businesses develop strategies to acquire new customers and retain existing ones while maintaining profit margins.

Profielfoto Freek Kampen

By Freek Kampen

Data & Analytics specialist and co-owner of New North Digital. With a background in online advertising, I solve tracking and data issues for entrepreneurs and agencies.

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