What is LTV? Customer lifetime value and how to raise it
The ArabyBot teamOfficial Meta partner · written from our own platform dataOn this page 4
The short answer
LTV (customer lifetime value) is the total a customer spends with you over their whole relationship. A simple estimate: average order value × purchases a year × years. A customer ordering 300 four times a year for two years has an LTV of 2,400.
Also asked as: «ltv يعني ايه» · «معنى ltv» · «ازاي احسب قيمة العميل»
Why does LTV matter to a seller?
Because it tells you how much you can spend to win a customer the first time: if their lifetime value is high, a somewhat higher acquisition cost still pays. A customer who comes back is cheaper than a new one each time.
LTV in ArabyBot
In ArabyBot Store you raise lifetime value with loyalty points, subscriptions that repeat the order, and a timely message to buyers, and spot repeat customers in the store reports. Loyalty points and customer subscriptions.
Frequently asked questions
How does LTV relate to acquisition cost?
Lifetime value must be clearly higher than the cost of acquiring the customer, or every new customer is a loss.
How do I raise lifetime value?
With an excellent first experience, loyalty points, a subscription for products that run out, and timely messages that bring the customer back.
Related terms
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