From the course: Google Ads Essential Training

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Calculate customer lifetime value

Calculate customer lifetime value - Google Ads Tutorial

From the course: Google Ads Essential Training

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Calculate customer lifetime value

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- [Instructor] In order to invest in paid marketing, really any marketing, you'll need to understand the value of your customer. Your business has customers, but they're not all created equally. Some customers might purchase one product and leave, while others become loyal to your brand and purchase many products over the course of a year or two or more. Which customers more valuable to you? Well, the second group, of course, but you need to be measuring Customer Lifetime Value in order to know that. This measurement is also known as LTV or CLV, and it defines the total value of a customer over the lifetime of their relationship with your brand. Knowing your lifetime value lets you not only grow around the right audience, but it lets you know how much you can spend in advertising to acquire this customer. Now, arriving at this number can be relatively complicated, and I encourage you to explore LTV calculations in more detail, but in general, you can get pretty close with the…

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