LTV (CLV) Modeling

What is LTV (CLV) Modeling?

LTV Modeling (Life-Time Value) corresponds to the present and future revenue expected from a relationship with a customer and your business. Also abbreviated as CLV (Customer Life-Time Value), understanding and predicting LTV values for potential and current customers aides in a company’s budget allocations and revenue forecasts.

LTV (CLV) Modeling

Life-time value (LTV) or customer life-time value (CLV) is a prediction of the net profit attributed to the entire future relationship with a customer. The corresponding analysis of financial value to a particular customer type or groups of customers aides in fundamental business decisions. Tied in with digital marketing tracking and attribution, CLV modeling helps determine budget allocations and revenue forecasts.

The core of growth for startups, in-depth LTV analysis helps identify the best types of customers for your specific business model. Understanding what actions attract new buyers to your site and knowing where successfully converted leads originated is key in establishing a forward action plan to consistently capture new potential customers that will be beneficial to your business in the long run.

We help clients identify a target LTV by analyzing past customer data and developing a more concrete understanding of their full funnel works. We utilize these insights to identify the best online marketing channels and practices that nurture new leads into the customers that make the most money for your business.

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