In today’s marketing fundamentals episode, we’re talking about a very important business concept: customer lifetime value and why it matters in your online business.
This is one of two universal business metrics. The other is customer acquisition cost.
Customer lifetime value tells you how much a customer is worth to you so you can figure out how much you’re willing to pay to acquire a customer.
This is especially relevant in the online marketing space where the cost to acquire a customer is generally higher than traditional product businesses.