Imagine you are running a hotel. Who would you rather have as a customer? High value but one-time visitor or an average customer who will keep coming back for many years? It depends, right?
Lifetime Value (LTV) is a concept that can help us determine the business value of our customers and with that understand:
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who is an ideal customer,
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how much they are worth to a business,
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and how much we can spend on acquiring a customer.
In this mini d.MBA episode we cover the definition of lifetime value and its relevance for designers.