Explore jobs
Find specific jobs
Explore careers
Explore professions
Best companies
Explore companies
This question is about marketing assistant skills.
What does LTV stand for in marketing?
In marketing, LTV stands for "lifetime value" and is a measure of the total value that a customer will bring to a company over the course of their relationship with that company. In other words, it is an estimate or prediction 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. If a company, for instance, can predict a user's lifetime value successfully, then they have a much better base on which to make decisions - helping a company maximize the effectiveness of its advertising spending.
LTV is calculated by finding out the average churn and average spend of a user over the course of a specific period to predict their overall spending in an app. Tapdaq, a mobile advertising network, created a simple equation for calculating LTV: LTV = ARPU x 1/Churn
The formula calculates a user's lifetime value by predicting how much money they'll make in a set period (the ARPU, or Average Revenue Per User) and by how well they return (1/churn). With this formula, you can attempt to predict how much a user will be worth throughout their time spent on an application.
Here are some examples of customer LTV strategies that companies can use to increase the value of their customers:
Loyalty programs. Companies can offer loyalty programs that reward customers for their repeat business. These programs can include discounts, free products or services, or exclusive offers that are only available to loyal customers.
Upselling and cross-selling. Companies can increase the value of their customers by upselling or cross-selling additional products or services. This can be done through targeted marketing campaigns, personalized recommendations, or product bundling.
Personalization. Companies can personalize their marketing and customer service efforts to better meet the needs and preferences of their customers. This can include personalized product recommendations, customized marketing messages, and tailored customer service experiences.
Retargeting. Companies can use retargeting strategies to re-engage customers who have previously made a purchase or expressed interest in a product or service. This can be done through targeted ads, email marketing campaigns, or personalized promotions.
Customer services. Providing excellent customer service can help to increase customer satisfaction and loyalty, which in turn can increase customer lifetime value. Companies can invest in training their customer service staff to provide a high level of service and support to their customers.
At the end of the day, developing strong LTVs that are ultimately focused on building long-term relationships with customers will lead to higher value for the company over time.
Choose from 10+ customizable resume templates
Zippia allows you to choose from different easy-to-use templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.
