Knowing LTV makes it easier to judge how much you can spend on acquiring a customer. In the Novi model LTV grows with every month of hosting.
What it means in practice
LTV (Lifetime Value) is a customer’s value over the whole relationship – the total revenue a business receives from them over the years, e.g. from the website, hosting, modules and further orders.
Why it matters for your business
Knowing LTV makes it easier to judge how much you can spend on acquiring a customer. For a business owner it’s also a strong argument: a hairdresser’s or dentist’s client isn’t one visit but years of visits.
Examples and good practice
- Calculate the average order value.
- Estimate how often a customer returns and how long they stay.
- Multiply value by the number of purchases over the relationship.
- Increase LTV through service quality and extra services.
How to use it in a sales conversation
In a conversation, show the client their LTV: “One new regular customer is worth several thousand złoty to you over the years – a Novi website costs PLN 1,995”. In the Novi model LTV grows with every month of hosting.
