How CPL Can Benefit Your Business
How CPL Can Benefit Your Business Customer-oriented businesses have long used customer acquisition costs (CAC) to track their marketing efforts. The logic is simple: The amount of money spent on marketing and advertising should be less than the revenue generated from new customers. The problem with this metric is that it lumps together a bunch of different marketing channels and doesn't give any insight into which channels are actually working. This is where customer lifetime value (LTV) comes in. LTV is a metric that measures the total value of a customer over the course of their relationship with a business. This includes everything from the initial purchase to repeat business and referrals. By tracking LTV, businesses can get a better understanding of which marketing channels are actually generating long-term value for their company. There are a number of different ways to calculate LTV, but the most important thing is to make sure you're includin...