Projects how much a customer is worth over their full relationship with the business, so acquisition and retention spend can be judged against a real number instead of a guess.
Adjust order value, frequency, margin and churn and the agent recalculates predicted lifetime value and LTV:CAC instantly.
| Metric | Value |
|---|
| 1. Pull history | Reads order value, frequency and margin per customer segment from order and customer master data. |
| 2. Estimate lifespan | Converts the segment's churn rate into an expected relationship length. |
| 3. Project value | Multiplies annual customer profit by expected lifespan to produce LTV, and compares it against acquisition cost. |
| 4. Hand off | Feeds LTV:CAC into the Media Network Optimizer's channel targets, and flags segments with short lifespans to the Churn Early Warning System. |