CLV

Use CAC and CLV to Monitor Ecommerce Growth, Profit

Growing an ecommerce business can feel like juggling knives whilst riding a unicycle on a tightrope. Business owners and managers have so much data available and so many key performance indicators, it can be difficult to know where to focus attention or investment. While there are many possible metrics or KPIs, businesses aimed at long-term, …

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CLV is a key success metric for leading performance marketing agencies – Econsultancy

What sets leading performance agencies apart from the mainstream? Econsultancy’s report, The Performance Agency Plan for Growth (in partnership with Google) delves into this topic in depth. The report is based on an online survey of nearly 400 senior executives from performance marketing agencies, with leading agencies being contrasted against the mainstream by their 2018 …

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Customer Acquisition Cost (CAC) vs. Customer Lifetime Value (CLV)

We write a lot about metrics on the WordStream blog. From click-through rate (CTR) to conversion rate (CVR) to return on investment (ROI)—if it’s measurable, and it can help you better understand the performance of your online advertising campaigns, we have the goods! Today, we want to talk about a couple metrics that, while related …

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Why companies need to be careful about CLV scores

Companies are increasingly using data to manage their customer relationships on a customer-by-customer basis. As detailed by The Wall Street Journal, some are now going so far as to assign scores to customers. In many cases, these scores are based on an estimation of customer lifetime value (CLV), a metric that a growing number of …

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What marketers should consider when using customer lifetime value (CLV)

“The purpose of a business is to create and keep a customer” – Peter Drucker, Management Consultant. Customer Lifetime Value (CLV) is considered one of the most important factors in determining a business’s present and future success. However, less than half of those surveyed for our research said they were able to measure CLV. Our …

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How to Maximize Customer Lifetime Value (CLV) to Grow Revenue and Profit

Customer lifetime value (CLV or CLTV) is the most underappreciated B2C metric. “Underappreciated, you say? We measure customer lifetime value, and it’s really important to us!” Sure it’s a common metric, but why is it important to your business? Most B2C marketers use customer lifetime value as an input to determine how much is reasonable …

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