Lifetime value modelling

Lifetime value (LTV)

Lifetime value is the total net benefit that a customer or group of customers will provide a company over their total relationship with a company.

An appreciation of lifetime value (LTV) is key to the theory and practice of customer relationship management. However, while the term is often used, calculation of LTV is not straightforward, so many organisations do not calculate it. Lifetime value is defined as the total net benefit that a customer, or group of customers, will provide a company over their total relationship with the company. Modelling is based on estimating the income and costs associated with each customer over a period of time and then calculating the net present value in current monetary terms using a discount rate value applied over the period.

New user (registered within last 60 days)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Active user (has used within last 60 days)

Magic Affiliate Cash

Magic Affiliate Cash

It’s so much easier than you think to create unlimited wealth online. I’m going to show you exactly how in my comprehensive guide. Affiliates are making more money than ever these days easily cashing in while they are off doing other things. It’s nice to know you can bring in a massive income while you’re not even monitoring things because you will not be personally selling anything. You don’t even have to speak from the people that order from you.

Get My Free Ebook

Post a comment