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Understanding LTV (Lifetime Value) as a Product Manager

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Understanding LTV (Lifetime Value) as a Product Manager

The Lifetime Value (LTV) of a customer is a crucial metric for a Product Manager. In its simplest form, LTV is the total revenue a company can expect from a single customer over the duration of their relationship with the company. It's a long-term perspective that ties together the upfront costs of customer acquisition with the ongoing costs of retention and the revenue generated by the customer. With a deep understanding of LTV, Product Managers can make informed decisions about marketing spend, product development, customer retention strategies, and more.