LTV, or Lifetime Value, is a critical metric in pricing strategy as it helps determine the total revenue a business can expect from a single customer over the course of their relationship. It's used to understand the economic value of a customer and can help in making decisions about how much money to invest in acquiring new customers and retaining existing ones. A higher LTV means that a customer is worth more to the business over time, which could justify a higher spend on marketing and customer acquisition strategies.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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