The Missing Link in Your LTV Calculation
At Sprocket, we pride ourselves as being the group of nerds….ahem….professionals who can help you grow value from your existing customers. As such, customer lifetime value (LTV) becomes a very important metric to track in order to determine whether your customer experience efforts are paying off.
Traditionally, LTV focuses on the value of a customer from the perspective of revenue or profit. How much revenue are we going to realize over the entirety of our relationship with a particular customer?
An important metric, but I would argue, an incomplete one.
Many companies have an incomplete view of LTV, and there’s a key source of value that is frequently omitted from the LTV equation: DATA.
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