LTV (Lifetime Value)

Calculating LTV in E-commerce

LTV helps e-commerce platforms understand the long-term value of customers, aiding in budgeting, marketing spend, and customer retention strategies.

Benefits of Understanding LTV for E-commerce

  • Informed Budgeting: Helps in allocating resources more effectively.
  • Improved Marketing ROI: Aids in optimising marketing spend for higher returns.
  • Enhanced Customer Relationships: Encourages strategies to nurture long-term customer relationships.

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