Know your LTV and get a higher ROI from your Marketing Strategy
What is LTV? LTV is the acronym for Lifetime Value. It represents the estimated income that a client can generate for a business during the entire time that they remain as a client. It is a numerical value that is calculated through a very simple formula. You just have to multiply the average value of the customer's ticket (payment for services or products) by the number of times the purchase or contract is made per year. This result must also be multiplied by the total number of months or years that the client uses what the business in question offers. Although it is just a figure, it represents one of the most important for any company. The first purchase, so the conversion from lead to customer, is the most difficult step. From there, the purchase index increases, which allows us to better understand this value and determine to what extent the investment has been profitable to attract new consumers. If the LTV is low and the initiative to convert customers has been ver