Calculating Life Time Value (LTV) is a key metric for measuring the profitability of a customer over their lifetime with your business. It involves analyzing the cost of acquiring new customers, the average size of their purchases, and how long they continue to patronize your business. A high LTV means that your business is growing quickly and you’re able to retain valuable customers who will bring in consistent revenue. By tracking LTV, you’ll be able to make informed decisions about which marketing strategies are most effective in bringing in new customers and keeping them engaged with your brand.