![]() LTV = Annual profit of customer X number of years the customer remains with you This amount is the expected future sum from each customer, which includes recurring revenues, up-sells, additional purchases, customer referrals, as well as any other generated revenue.Ĭalculate the LTV of your customers by using this formula: This value is simply what you expect from each of your customers over their lifetime. Lowest traffic required X lowest average CPC = lowest total budgetīefore Finalizing Your Budget, Learn about customer LTV (Lifetime Value).Highest traffic required X highest average CPC = highest total budget.Traffic required X average CPC = total budgetįor estimating high and low ranges, use that formula twice:. ![]()
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