'Lifetime Value' (LTV) is a crucial metric in e-commerce and customer relationship management that estimates the total revenue a business can expect from a single customer over the course of their relationship with the company.
LTV helps businesses in making informed decisions about how much to invest in acquiring new customers and retaining existing ones. It is a key metric for understanding the long-term value of customer segments and guiding strategic planning in marketing and customer service.
Increasing the LTV of customers is a primary goal for many businesses, as it signifies a long-term, profitable relationship with customers. Strategies to improve LTV include enhancing customer experience, increasing customer engagement, and offering additional value through loyalty programs and personalized services. By focusing on LTV, businesses can build lasting customer relationships and sustainable revenue streams.