Customer lifetime value

Lifetime value assigns a future monetary value to a customer relationship by predicting their future spend and likelihood to stay with the brand. This information helps you understand whether a certain channel is giving you sub-par customers, and if certain marketing levers need tweaking. For example, you may want to cap the acquisition spend on a channel, if you know the likely value of the acquired customer, or tune your landing pages if you know what high-value customers first buy. Knowing your most valuable customers also helps you prioritize investments to retain them.

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