Total lifetime value (TLV) is a metric that tracks what a customer will spend with your brand over their lifetime (or a long-term period of say five years). Knowing your average TLV enables you to make smarter marketing spends as you have a better understanding of what a customer is truly worth.
However, many brands overlook referral potential when they calculate TLV. Referral potential is important because it:
- Gives you clearer insights into who your best customers are, based on what business they give you
- Makes your data tracking more sophisticated and more actionable
- Empowers you to build marketing campaigns that inspire even more customers to refer you business
Send me a note if you have more questions!