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What is Customer Lifetime Value?

Neil Patel

In the most basic terms, customer lifetime value measures how much a customer will spend over their entire “lifetime” with your company. Customer lifetime value goes beyond traditional marketing practices by providing insight into a customer’s long-term value to your business.

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How to Use Average Order Value and Customer Lifetime Value to Increase Revenue

FastSpring

In which case, you essentially have two options: (1) you can get your customers to spend more on each order (increase the Average Order Value), or (2) increase the frequency at which your customers buy from you (increase Customer Lifetime Value). Subscriptions. What is AOV? How do you calculate AOV?

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What is customer acquisition cost and why does it matter?

Intercom, Inc.

What is Customer Acquisition Cost (CAC)? Customer Acquisition Cost is the best approximation of the total cost of acquiring a new customer. It should generally include things like: advertising costs, the salary of your marketers, the costs of your salespeople, etc., divided by the number of customers acquired.

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Five ways to build a $100 million business

The Angel VC

Let's assume that your CLTV (customer lifetime value) is $2,700 (assuming an average customer lifetime of three years and a gross margin of 90%) and that you want your CLTV to be 4x your CACs (customer acquisition costs). To acquire 100,000 of these businesses you need something in the order of 0.5-2

Scale 280
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Perpetual License vs. Annual License vs. Subscriptions

Baremetrics

We are going to walk you through a couple of the most popular pricing models—perpetual license and annual license, along with its variant subscription model —as well as mention a couple of the other popular ways to monetize software. Payment ii. Using Baremetrics to monitor subscription revenue. Table of Contents.

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11 Customer Retention Tactics to Keep Your Customers Coming Back

FastSpring

Here’s why: It’s cheaper to get your existing customers to make repeat purchases than it is to get a new customer. In fact, getting a repeat customer can cost anywhere from five to 25 times less than finding a new customer. And here are our top tips to get your existing customers to buy more.

Retention 148
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How a Subscription Video Service Uses Data + Smart Marketing to Retain Customers

Baremetrics

Being a Subscription Video On Demand (SVoD) service, subscribers are the lifeblood of our business. Therefore, any sharp spike in churn (cancelled subscriptions) can be catastrophic to us. Within this, we were able to pinpoint the three biggest metrics that we needed to monitor when dealing with customer churn.