Finance Formulas / July 19, 2018 / Aniyah Booth
In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer. The prediction model can have varying levels of sophistication and accuracy, ranging from a crude heuristic to the use of complex predictive analytics techniques.
Customer acquisition cost (CAC) is a metric that has been growing in use, along with the emergence of Internet companies and web-based advertising campaigns that can be tracked. Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision-making process.
We Also Think You’ll Like