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Customer Lifetime Value: How to Calculate LTV for Facebook and Instagram

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Customer Lifetime Value: How to Calculate LTV for Facebook and Instagram

Wondering if you’re paying too much to acquire us cell phone database Facebook and Instagram customers? Do you know how much a single customer is worth to your business? In this article, us cell phone database you’ll discover three ways to find your customer lifetime value (LTV) and learn how LTV can inform your marketing efforts. Customer Lifetime Value: How to Calculate LTV for Facebook and Instagram by Maurice Rahmey on us cell phone database Social Media Examiner.

How Establishing Customer Lifetime us cell phone database Value Improves Marketing Decisions Your customer LTV is how much the average customer is worth to your business in the lifetime of their relationship with you. Lifetime, in this context, refers to the number of years you retain that customer. us cell phone database For example, your average customer might do business with you for 6 years and purchase $2,000 during that time. Different audience niches often have different LTVs. Some customers will stick us cell phone database around longer, while others may regularly make purchases that have higher-than-average order values.

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Your LTV is an essential metric, even if it’s one us cell phone database that you need to track down instead of being readily available on an ads dashboard. Only by understanding your LTV can you accurately assess the long-term ROI of your campaigns. It’s also a crucial figure that you’ll want to take into us cell phone database account when determining how much you can afford to spend to acquire a customer through paid platforms, including Cpa Email list Facebook and Instagram ads and even referral marketing However, when you factor in LTV, you may realize that your average customer will purchase 15 us cell phone database times on average, giving you $150 in sales for an $8 customer acquisition cost. That’s a substantially larger ROI

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