Optimizing customer acquisition costs

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LTV allows you to calculate the appropriate cost to spend on acquiring new customers.

By dividing customer segments and calculating LTV, you can approach each customer segment at an appropriate cost.

If you determine that you can spend up to 30,000 yen on acquisition costs for a customer segment with an LTV of 120,000 yen, you can make more aggressive advertising investments and promotional activities.

Conversely, for customer segments with low LTV, you can develop a well-balanced strategy, such as reducing acquisition costs.

3. Guidelines for improving our services
By analyzing fluctuations in LTV, you can understand france whatsapp number data what factors changed customer behavior and determine the direction for improving your services.

For example, you can understand causal relationships such as an increase in LTV after adding a particular feature, or a decrease in cancellation rate and an improvement in LTV as a result of improving the quality of customer support.

These insights allow us to take more effective measures to improve our services.

4. Planning strategies for each segment
By comparing LTV (lifetime value) for each customer segment, you can develop the optimal strategy for each customer group.

This allows companies to optimally allocate resources.

Specifically, segmentation involves subdividing segments based on various factors such as age group, frequency of use, and region, and then analyzing the LTV of each segment.

By analyzing LTV in detail by segment, you can gain a deeper understanding of each customer base and develop effective marketing strategies and products.

5. Business Value Assessment
LTV is a very important indicator when assessing the corporate value of a subscription business, and investors and financial institutions place great importance on LTV in judging the quality of their customer base.

Since LTV is an indicator of a stable revenue base and future growth potential, a high LTV is advantageous when raising funds and assessing corporate valuation.

As you can see, LTV is not just a metric for subscription businesses.

By developing a business strategy centered on LTV, it is possible to achieve sustainable growth and improved customer satisfaction at the same time.