Calculating Customer Lifetime Value (CLV) can be very complex depending on the specific revenue and cost levers that are part of your business, but it doesn’t need to be. The concept behind CLV is fairly simple. Essentially, you’re asking yourself a very basic question – how much is your customer worth to you?
Moving to a CLV model generally raises the acceptable CPA, fuels budget growth, and boosts the number of new high value customers acquired through online marketing channels.
Not all customers are created equal, so here’s a quick guide to introducing CLV and getting it right for your business.
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