#ltv

Calculate customer lifetime value. Formula: Average Order Value × Purchase Frequency × Customer Lifespan. Approaches: 1. Historical (actual data). 2. Predictive (cohort analysis). 3. Segment by customer type. 4. Factor in churn rate. 5. Include gross margin. 6. Discount future cash flows (NPV). 7. Track LTV trends. 8. Optimize to increase LTV. LTV:CAC ratio crucial for sustainability. Aim to maximize LTV through retention.