Understanding the Lifetime Value (LTV) of a customer
Explaining Lifetime Value (LTV) to your client
Lesson 13: Lifetime Value (LTV) of your Customer
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The lifetime Value (LTV) of your customer is the profit generated by your customer over time.
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For example, if a customer pays you $1500 every month, for 3 years, then their value over their client lifetime is $54k!
This is important to know because if it costs $2000 to get a lead, that may not seem worth it for $1500 every few months, but when you stand back and look at the big picture, you'd surely trade $2k for $54k.
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