In marketing, we have a key performance indicator (KPI) known as lifetime value or LTV. It’s a way of understanding the value of a customer brings to an organization. Essentially it helps marketers look at objective data about how we’re doing by collecting the numbers about average transactions, frequency of sales, and the customer lifespan. When combined with customer acquisition costs, marketers can zero in on the real benefits of retaining customers vs. acquiring new customers. The data ensures we make smarter and more efficient choices with our activities and marketing. It’s not enough to understand the LTV for your customer population at-large. By segmenting the different audiences, we’re able to make decisions and improve value within the various segments.
Creating Lifetime Value at Your Organization
human resources today, lifetime value, Marketing