Words of Wisdom!

1. Customer LTV is not a strategy, but an analytical tool. Customer Lifetime Value can be an excellent analytical tool to evaluate future investments. You can calculate LTV (Life Time Value) and use it together with other parameters to support your strategy. 2. Customer Lifetime Value is not just one number – it should be different numbers for different types of customers. Chances are, your business has a variety of different types of customers and one single estimation doesn’t reflect all of them. Remember that different acquisition channels can generate more LTV than others, with organic search to generate more LVT than average in comparison with other channels in retail and e-commerce businesses. 3. You should be very careful with your CLV methods when a very large percentage of it is at risk in the future. It is wiser to spend some of your money on retaining current customers than risking acquiring new ones. If you still insist on spending a large amount of first transaction profit on customer acquisition, make sure you closely monitor and analyze the results as the risk of failing (and losing money) is way higher. 4. Customer Lifetime Values are not static…they change over time. It is wrong to assume that by keeping acquisition costs lower than the current Customer Lifetime Value, you will have a certain amount of revenue many years from now. Chances are that if you measure CLV one year from now, you will see a different number, even within the same channels. Visit the link in our bio for more blog posts on all things CLV and other topics. www.neovora.com