Lifetime customer value (LCV) is a marketing metric that predicts the profitability of a relationship with a customer. By understanding LCVs, marketers can deploy strategies to maximize the value of their existing customers. LCVs are incredibly important when tending to new leads. You, of course, want to nurture the leads that will bring the most value to your company. To calculate lifetime customer value, you must first identify the point at which a customer creates value to your organization and then review the entire customer journey. By calculating the revenue gained minus the cost of gaining and serving the customer, you can predict the lifetime customer value.
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