Calculating Lifetime Value

By Jason Caldwell

One way to analyze acquisition strategy and estimate marketing costs is to calculate the Lifetime Value (“LTV”) of a customer. Roughly defined, LTV is the projected revenue that a customer will generate during their lifetime. In this graphic we’ll briefly cover how to calculate LTV and how to use LTV to help solidify your marketing budget.

How To Calculate Customer Lifetime Value

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http://blog.kissmetrics.com/how-to-calculate-lifetime-value/

 

 

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