Lifetime Value (LTV) of a customer is an important metric to know about your customer base. This metric can help you understand how many years are left within your customers as well as future revenue. The metric also tells you the cost you should be willing to pay for a prospect.
The LTV helps you allocate resources to maximize the return on investment from each customer.
Knowing the Lifetime Value of a customer can save you money in the purchasing of a prospect list and ensuring that you maximize your profit from that customer.