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ADDEPTO | Get Benefits from LTV Predictions and Use it For Your Marketing Campaigns
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INTRO - LTV IN MARKETING
CAMPAIGNS
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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.