Tanner SmithCEO Syndicate Marketing | Scaling 7, 8, & 9 figure businesses | Performance marketing for ecom, local, and info businesses

The number one things business owners should know! 📈

2 Oct 2023 · 1 min

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In this brief instructional video, the speaker tells e‑commerce business owners that the single most important metric they need to understand is Customer Lifetime Value (LTV). LTV is defined as the total amount of money a customer is expected to spend with the business over the entire relationship. The speaker explains that the goal is to maximize this number because higher LTV means more revenue per customer. Knowing the LTV also provides a solid justification for allocating more budget to marketing, as it shows the potential return on investment from acquiring and retaining customers.

Chapters

There's one thing that every single e-com business owner should know, and that is your lifetime value, your LTV. Here's the reason why. Your LTV is a number, a metric that measures how valuable a customer is to your business, how much money they will spend with your business over their lifetime. Now, your goal as a business owner is to try to make that LTV number as high as you possibly can, because you're gonna be able to make a lot more money per customer. If you know your LTV, it's going to actually give you more of an excuse to invest in your marketing.