There are numerous strategies you can use to increase the value of your customer, with the major being, engaging them across multiple channels with better personalization. By targeting high-value customers, and nurturing them, will result in increased value of your customers. Proper segmentation must be done before starting any campaign across emails, whatsapp, ads, etc. Opt for a customer data platform for an omnichannel experience to your customers and make their journey a seamless experience.

The lifetime value is a revenue metric and shows the average revenue that a customer brings to the business throughout their lifetime. However, when using to put a check to your CAC, you must rely on profit-based LTV or the CLV. So, multiply the profit margin to the LTV to get the customer lifetime value based on profit.

The customer LTV gives you insights into how much money a particular customer brings for your business. This metric helps you with the value that you must use to put a check on your customer acquisition cost (CAC)/

Often interchangeably used, LTV (lifetime value) and CLV (customer lifetime value), are almost one and the same. The former refers to the average lifetime value across customers in their database, while the latter refers to the lifetime value of a particular customer.

Some of the factors that influence LTV calculation are - the average order value, retention period of each customer, number of orders / transactions per customer, profit margin across products, etc.