What it means
LTV (Lifetime Value) – total net profit of a company attributed to the entire relationship with a customer. There is also a simplied version of the definition in Russian, which briefly characterizes this indictor – it is customer lifetime value. This it the most common translation. This indicator is also known as CLV (Customer Lifetime Value) or CLTV.
Why is LTV important
The most important questions when creating a CRM is how you will use it in order to increase Customer LTV.
There are products which LTV can be easliy increased – coffee, for example. A person can buy it again next day.
However, it might be not that easy with other products – the sale of Turkish carpet, for instance. The customer has bought it and hardly needs another one tomorrow. You need to think carefully what to offer this client the next day.