Customer Lifetime Value (LTV)
When you say Customer Lifetime Value (LTV) you are somehow talking about profits.
Customer Lifetime Value is one of the most important factors for your business sustainability. Therefore, understanding what the customer lifetime value is and how it impacts your business is a key point.
Here you can find all the deepenings you need when it comes to customer lifetime value.
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LTV and CAC themselves don’t tell you much, they need to be combined in one metric. Defining such metric as LTV/CAC or LTV-CAC you’re investigating two different aspects of your business.
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LTV greater than CAC is not enough. You should get the most in terms of CAC payback period to grow sustainably. Discover all you need to understand it.