Lifetime Value of your customer

Updated on

Most businesses fly blind when it comes to their numbers. They push ads, sell stuff, but have no clue what a customer is truly worth. That’s where LTV (Lifetime Value) comes in.

Why Knowing LTV Changes Everything

  • It tells you how much you can actually spend to get a customer
  • Helps decide if your pricing makes sense
  • Makes upsells and retention easier to justify
  • Turns random marketing into math-backed growth

Real Example Power Moves

  • Dropbox calculated LTV and spent aggressively on referrals—they grew from 100k to 4M users in 15 months
  • Shopify knows merchant LTV cold, which lets them outbid competitors on ads
  • Netflix uses LTV to predict churn and tweak pricing before it hurts revenue

Get your LTV right, and suddenly every marketing dollar starts working smarter.

Analyzed by Swipebot

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