Definition
The LTV ratio measures the relationship between a customer's lifetime value and the cost of acquiring them, helping businesses assess the profitability of customer acquisition strategies.
Related Services
Customer analytics and business intelligence services help businesses calculate and optimize their LTV ratio to ensure sustainable growth.
Problem and Application
A high LTV ratio means that a customer generates significant revenue relative to the cost of acquisition, indicating efficient marketing strategies.
Conclusion
The LTV ratio is a crucial metric for evaluating the return on investment from customer acquisition efforts.
