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Did you know that an increase of only 5% in customer retention may raise profitability by 95%?*
Figuring out your customers’ lifetime value (LTV) is a vital step to increasing your profitability.
You will discover:
– What is the lifetime value of a customer
– How to calculate lifetime value of a customer the easy way
– Can LTV predictions be made with machine learning?
– How to forecast cashflow
What is LTV?
Lifetime Value or LTV is an estimate of the average revenue that a customer will generate throughout their lifespan as a customer. This ‘worth’ of a customer can help determine many economic decisions for a company including marketing budget, resources, profitability and forecasting. It is a key metric in subscription based business models, along with MRR (Monthly Recurring Revenue).
Martin Macmillan is the Founder and CEO of Pollen VC, the leading provider of non-bank debt financing to the digital economy.
Learn more:
https://pollen.vc/
https://pollen.vc/calculators/roas-ltv-and-cash-flow/
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The post How to Calculate & Increase Lifetime Value appeared first on HumanitasConnects.
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