You’re Approaching Lifetime Value the Wrong Way. Here’s Why.
Jan 07, 2021
Lifetime value is a big deal
to ecommerce businesses…whether they
realize it or not.
For some businesses, lifetime value is
how they make their marketing
campaigns work. One of our clients
spends a $1.87 on marketing for every
dollar they make in sales—on month
one. However, most customers stick
around for years, so in reality, their
overall return on investment is about
31x.
Welcome message from author
So, should you freak out if your lifetime value is falling? Maybe, but
probably not. It all depends on what you’re trying to achieve with your
marketing at that given moment in time.
The trick is to balance acquisition and nurturing in a sustainable way. As
long as you’re paying attention to both, your LTV will almost always
bounce back in the long run. You might have peaks and valleys, but you’ll
be building a customer base that will support your business for years.
Related Documents
