Customer Lifetime Value

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mehadihasan123456
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Joined: Sat Dec 21, 2024 4:33 am

Customer Lifetime Value

Post by mehadihasan123456 »

LTV is the total profit that a company will receive from one customer during the entire period of cooperation. This is one of the key indicators in calculating profitability - it gives a deeper understanding of the benefits of an advertising channel.

Let's say you spent $20 to attract 1 client, and he made a purchase for $10. At first glance, the investment is unprofitable, but the next month the same customer, having felt trust and loyalty to the company, makes an afghanistan email list order for $30, and six months later - for $100. Perhaps additional measures were used to stimulate repeat purchases - for example, SMS reminders - but they were much cheaper than the initial investment. In this case, the investment was completely justified.

How to evaluate the ROI of different digital channels
Each advertising channel in the digital sphere has its own characteristics and tasks, therefore, the following metrics are used to calculate ROI, in addition to conversions:

in E-mail marketing – click-through rate, email open rate, unsubscribe rate, attracted leads;
in Push notifications – subscriptions, click-through rate, open rate, number of attracted leads;
in social media and messenger accounts – click-through rate, open rate, number of new subscribers, engagement;
in Landing Page – the number and duration of page views, traffic, users visiting the site for the first time and again;
in the blog – traffic, number of clicks on internal links, unique users, time spent on the page.
Key metrics allow you to calculate the exact ROI, identify key growth and risk areas, and adjust your business strategy.
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