Lifetime Value LTV

What is Lifetime Value LTV?

Lifetime value is a marketing term that refers to the predicted profit that a company is going to gain from a relationship with a specific customer. The better the prediction, the easier is for the advertisers to plan their future business moves. An accurate lifetime value projection can provide the advertiser with the information they need for proper marketing management. The bad news is that predicting the lifetime value of a customer is not easy, as it depends on a lot of different factors. That is why many advertisers decide on using complex methods of analytics, rather than basing their business strategy on subjective assumptions.