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How Important Is Customer Lifetime Value for Online Retailers?

With help from ecommerce experts, we look at the importance of customer lifetime value (LTV), a metric used by companies to measure the success of their customer retention strategies. 
Customer lifetime value is a measure of the value of a customer to a business over the course of their relationship.
For example, a customer of Amazon buying a few items a month might be worth thousands¬† in revenue over a period of years. Therefore, it’s in the interest of companies like Amazon to encourage customer loyalty.
It’s also why some companies (broadband providers for example) offer incentives at an initial loss to acquire customers – they know that it will pay off in the end if customers remain loyal.
I asked some of the expert contributors to our latest report on loyalty and retention for their views on LTV.


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