The Lifetime Value (LTV) Relationship

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When we talk about the lifetime value were not talking about the Lifetime television network and how much meaning it has to your life. Some may say that the value of the TV network is mainly cherished when you’re going through a relationship break up or just want to watch a few “chick flicks”. The lifetime value in marketing is the net profit a customer attributes to a
company over its lifetime. Let’s relate this to an actual relationship, if there was a way to determine how long a relationship would last (the lifetime value) then we can determine how time, money and memories we share with that partner. Marketers on the other hand, use the lifetime value to determine their net profit over the lifetime relationship with a consumer. With this information you can decide how much money the company can spend on advertising or promotion towards consumers.

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