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LTV Calculator

Customer Lifetime Value

Here, we will show you what LTV stands for and how to use our LTV calculator for your marketing purposes.
First things first...

What is LTV?

The LTV abbreviation stands for Lifetime Value, also known as Customer Lifetime Value. This is one of the key metrics in eCommerce at large, and particularly in marketing. Being a long-term perspective parameter, LTV reflects our costs spent on clients’ attraction, engagement, and retention. It also includes the income that the company gains from those efforts. Put simply, knowing the precise LTV index we can calculate the amount of profit we generate from one client during the entire time of our relations.

What makes an LTV so essential?

To keep all businesses running, income should exceed our expenses. And Customer Lifetime Value helps you:

  • analyze customer engagement through different channels. Meaning, it helps you find your most effective channels;
  • segment your target audience: LTV is a good metric to detect the most loyal customers and pay more attention to them;
  • improve your customer retention strategy. Not only does LTV show the client's life cycle but also indirectly helps detect weaknesses of the company’s service and marketing strategy;
  • make smarter decisions about where to invest your marketing budget.

What is considered a good LTV?

Prior to using the Stripo CLV calculator, we need to understand that there is no such thing as good or bad LTV. It does depend on your industry. We strongly recommend that you calculate the LTV of individual and average customers constantly. Because this is one of the most important metrics for your business. If it goes down by even one point, this is a good reason to revise your marketing strategy.

Considering this, we dare to say that LTV is essential for the long-term strategy.
Always keep an eye on it.

How to use the Stripo Customer Lifetime Value calculator?

Like we said, LTV is important and we need to measure it quite often. The Stripo LTV calculator will help you do it within just a minute. You enter your numbers in respective slots, and voila. See the results right away!