Accordingly, the calculation will

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One of the most common ways is to add up and count all purchases of one customer since the beginning of their relationship with the company (or for a specific period). You can also determine the average value using the formula: LTV = average check * average number of purchases * life cycle According to the formula: average check is the average amount that a customer spends on one order; average number of purchases - the average amount that a customer spends on one visit to a store or on one purchase of a product; life cycle - the period of relationship with the company from the moment of attraction until completion.

Let's imagine a cozy coffee shop near your azerbaijan telegram home. Over the past 5 years, you have visited the coffee shop twice a week and bought a cup of aromatic cappuccino. Its cost is 40 UAH. look like this: LTV=40 UAH*100*5=20,000 UAH Subscribe to hot Marketing news MARKETER 2.0 > Subscribe to the monthly News Digest Enter your email 20,000 UAH is the income you brought to the company for all the time you visited the coffee shop.

More details about the calculation formula and details of all its componentsthey told in the article. What is LTV: When, How, and Why Should a Business Calculate Customer Lifetime Value? Read also : Marketing research: what is it and why do businesses need it? How often should you calculate customer LTV? Customer lifetime value should be calculated regularly to keep your finger on the pulse and have relevant data for making strategic decisions.