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ADDEPTO | Get Benefits from LTV Predictions and Use it For Your Marketing Campaigns 02 INTRO - LTV IN MARKETING CAMPAIGNS 02 While LTV has an influence on your company's finance and revenues, it also serves to aid marketing investment decisions. It is like in any investment portfolio, you want to invest more in money and assets that produce a higher returns (ROI). As a result, it makes sense to invest more of your marketing budget in customers that are more profitable and prefer to buy from you, cost less to acquire, and recommend your services or products by that helping you to reduce new customer acquisition costs. Calculated LTV helps you determine in which existing customers to invest and which types/profiles of customers produce the highest LTV. You can use these profiles to acquire new customers that best resemble your existing high-value customers. LTV can serve as a valuable guide for deciding how much to spend on acquiring a new customer. On the other side predicted LTV can help you to understand what is the future of your cash flow and even understand what of the marketing channels perform the best at the beginning of each marketing campaign. Remember the gold rule, it costs 5 times more to acquire a new customer than it does to retain an existing one. Also, if 1/3 your LTV is less than 10 percent of sales, you may have an overhead expense problem that needs to be addressed.