BUCS Analytics
1,082 followers
- Report this post
Product Lifetime ValueProduct Lifetime Value (PLTV) is a metric that estimates the total net profit a product is expected to generate over its entire lifecycle. By understanding PLTV, businesses can make informed decisions about how to allocate resources and prioritize product development, marketing, and sales efforts.Product Development: PLTV helps in assessing the value of product development efforts. By estimating the PLTV of a product before and after implementing improvements or new features, businesses can gauge the impact of those changes on the product's profitability. This will inform decisions for product development resource allocation, prioritization of enhancements, and feasibility of introducing new versions or variations of the product.Marketing and Sales: PLTV aids in evaluating the effectiveness of marketing efforts. By analyzing the PLTV of customers acquired through different marketing channels or campaigns, businesses can identify the most cost-effective and profitable marketing channels. This knowledge helps allocate marketing budgets, optimize marketing strategies, and focus resources on acquiring customers with higher PLTV potential.Pricing Strategies: PLTV provides insights into the long-term revenue generated by a product. By comparing the PLTV with the costs associated with production and delivery, businesses can determine whether the pricing strategy is optimal. If the PLTV exceeds the costs, it suggests the product is priced appropriately and generating a satisfactory return on investment. If the PLTV falls short, it indicates the need to adjust pricing to improve profitability and/or explore cost reduction strategies.Product Lifecycle Management: PLTV assists in managing the lifecycle of a product. By understanding the estimated PLTV at different stages of the product's lifecycle, businesses can make informed decisions about product updates, enhancements, or diversification. It helps in determining the right timing for product launches, managing inventory levels, and planning for product discontinuation.In summary, PLTV provides valuable insights into product performance, enabling businesses to make data-driven decisions regarding pricing, development efforts, marketing strategies, and product lifecycle management. It helps businesses optimize their resources, maximize profitability, and ensure long-term product success. Reach out to BUCS today to better understand your PLTV.#productdevelopment #productlifecycle #productmanagement #dataanalytics
9
2 Comments
Futurum One
4mo
- Report this comment
Understanding PLTV is crucial, and generative AI can elevate this by quickly analyzing vast datasets to predict and optimize your product's profitability throughout its lifecycle. 📈By integrating generative AI, you can enhance decision-making in development, marketing, and pricing strategies, ensuring your resources yield the highest returns. Let's explore how AI can transform your PLTV calculations into actionable insights. 🚀To see the full potential of generative AI for your business, book a call with us and discover how to achieve better quality work in less time. 📅Brian
1Reaction
Treegens
3mo
- Report this comment
Absolutely, understanding Product Lifetime Value (PLTV) is crucial. 🌟 Leonardo da Vinci once said, "Simplicity is the ultimate sophistication." True for evaluating the essence of a product's journey! Speaking of value and making an impact, Treegens is sponsoring a Guinness World Record for Tree Planting – a chance to be part of something monumental! 🌳 Check it out: http://bit.ly/TreeGuinnessWorldRecord
1Reaction
To view or add a comment, sign in
More Relevant Posts
-
Javi d'Erausquin
See AlsoThe Incredible Power Of Twihozon: How This Innovative Technology Is Transforming The Future - RosylittlethingsLexi Bell: The Captivating Performer Taking The Music Industry By Storm - Rosylittlethings1.A firm faces the production function፡ Q = 2K0.2L0.6 and can buy L at Birr 240 a unit and K at Birr 4 a unit. a. If it has a budget of Birr 16000, What combination of K and L should it use to maximize the output? b. If it is given aCo-founder at Gala
- Report this post
Consumer is back! For everyone trying to succeed at consumer subscription:1. Do whatever it takes to get payback on the first payment.2. Prioritize longer plans.3. The funnel is as important as the product.4. 50% of your acquisition should be organic.(These guidelines do not apply to hybrid monetization and other complex business models)
21
1 Comment
Like CommentTo view or add a comment, sign in
-
Aira Mae Zanoria
Live Shopify CRO and Speed Weekly Workshops Hosted by CRO Experts from Agencies and Top DTC Brands.
- Report this post
"Revolutionize Your Website Performance: 2x Faster Store Speeds with All Marketing Services' Founder and Edge Delivery Engine - Watch Now for Expert Tips and Insights! #CDN #EDG #WebsitePerformance"
Have Your Site CRO Assessed Live by a Director of eComm Product Management https://www.youtube.com/
Like CommentTo view or add a comment, sign in
-
Martin Valencia
eComm Live Stream Partner Coordinator and Recruiter for eCommerce Companies| Human Resource Specialist | ALWAYS HIRING!
- Report this post
"Revolutionize Your Website Performance: 2x Faster Store Speeds with All Marketing Services' Founder and Edge Delivery Engine - Watch Now for Expert Tips and Insights! #CDN #EDG #WebsitePerformance"
Have Your Site CRO Assessed Live by a Director of eComm Product Management https://www.youtube.com/
Like CommentTo view or add a comment, sign in
-
Ben Yi
Proud Data Nerd - working on the next generation analytics, ML, AI
- Report this post
"Customer Lifetime Value (CLV) is about the future, so we should invest big now." Heard in a client meeting last week. Err... kinda...To her credit, she used it as an example of how CLV can be misused to justify overspending on marketing.To use the CLV framework appropriately for marketing investment, consider the following:1. Margin vs Revenue: In CLV calculations, contribution margin is key. Relying solely on revenue can lead to overestimating CLV. Take a simple example: $200 monthly revenue over 24 months totals $4,800. At a 50% margin, the contribution margin is $2,400 over 24 months.2. Lifetime value without considering probability: Assigning probabilities to future transactions and retention is vital for accurate CLV estimation. Using the same example of $100 contribution margin per month, applying a 5% monthly drop-off over 2 years, the value reduces to $1,416. Without applying the 5% monthly drop-off, the estimate is $2,400 - an overestimate of ~70%.3. Discounting future cashflows: Apply the financial principle of discounting future cashflows to account for the time value of money. Over a 2-year period, the overestimation aligns roughly with the discount rate. For instance, a 20% annual discount rate results in a 20% overestimation without discounting.4. Combining the factors: In this example, the discounted and probabilized future cash flow (margin) amounts to $1,315. Compared to the initial estimate of $4,800, this overestimates CLV by a significant 265% (or 3.65X)!There are some simplification frameworks, such as CLV vs CAC ratios like 3:1 or 5:1, commonly used in venture capital. However, understanding underlying assumptions and adjusting them is essential. In this numerical example, a 3:1 ratio wouldn't break even, and a 5:1 ratio leaves only a small margin for error.By understanding the factors involved in CLV calculations, businesses can make informed marketing investments aligned with their goals. Matching the right CLV definition to its use prevents reckless overspending. A grounded understanding of CLV allows for optimized marketing efforts, maximizing long-term profitability, and ensuring success in the evolving business landscape.#clv #ltv #lifetimevalue #customerlifetimevalue #marketinganalytics #marketing #npv #CAC
15
2 Comments
Like CommentTo view or add a comment, sign in
-
Elli Mccullough
Ecommerce Event Marketing Manager | Shopify Experts Become Influencers @Ecomm.Stream | Run Your Own Live Stream Workshops to 100K+ Brands
- Report this post
"Revolutionize Your Website Performance: 2x Faster Store Speeds with All Marketing Services' Founder and Edge Delivery Engine - Watch Now for Expert Tips and Insights! #CDN #EDG #WebsitePerformance"
Have Your Site CRO Assessed Live by a Director of eComm Product Management https://www.youtube.com/
Like CommentTo view or add a comment, sign in
-
Leah Moreno
Where eCommerce Experts become influencers. Experts host free workshops to an audience of 100K+ store owner and operators, digital designers and marketers, and eCommerce managers and executives.
- Report this post
"Revolutionize Your Website Performance: 2x Faster Store Speeds with All Marketing Services' Founder and Edge Delivery Engine - Watch Now for Expert Tips and Insights! #CDN #EDG #WebsitePerformance"
Have Your Site CRO Assessed Live by a Director of eComm Product Management https://www.youtube.com/
Like CommentTo view or add a comment, sign in
-
Kathleen Greenler Sexton
CEO & Publisher at Subscription Insider
- Report this post
The 9X Subscription Growth Secret subscriptionforum.com🌱 Ready to Cultivate Exponential Growth for Your Subscription Business? 🌱Tired of the same old strategies yielding marginal results? 🤔 It's time to shake things up and embrace a fresh perspective on subscription growth! Join us on August 16th at 1 PM Eastern for an eye-opening webinar hosted by Subscription Insider and featuring the brilliant Robert Skrob. 🌟🔑 Discover the power of increasing your Customer Acquisition Cost (CAC) and witness how a business achieved a jaw-dropping 9X growth surge by shifting gears from $50 to $175 CAC! 💥🚀 This webinar is your chance to:🔹 Break free from conventional growth limitations.🔹 Embrace a counterintuitive approach to CAC for extraordinary results.🔹 Understand the profound impact of CAC Payback and Lifetime Value (LTV).🔹 Uncover the truth behind trial subscriptions and pricing strategies.🔹 Master the art of growth fueled by customer cash flows, not just outside funding.Don't let your subscription growth plateau. 📉 Seize this opportunity to propel your business into exponential success! 🚀 Reserve your spot now and be part of this game-changing event. https://bit.ly/3OSJfGI #SubscriptionSuccess #GrowthStrategies #SubscriptionInsider #Webinar #BusinessBreakthrough
1
Like CommentTo view or add a comment, sign in
-
-
Wyatt Belden
Brand Acceleration | Growth for Remi | Webinar Tzar
- Report this post
"Revolutionize Your Website Performance: 2x Faster Store Speeds with All Marketing Services' Founder and Edge Delivery Engine - Watch Now for Expert Tips and Insights! #CDN #EDG #WebsitePerformance"
Have Your Site CRO Assessed Live by a Director of eComm Product Management https://www.youtube.com/
8
Like CommentTo view or add a comment, sign in
-
Mary Piper-Patel
Business Intelligence Manager and Amazon and Walmart Marketplace Consultant
- Report this post
"Revolutionize Your Website Performance: 2x Faster Store Speeds with All Marketing Services' Founder and Edge Delivery Engine - Watch Now for Expert Tips and Insights! #CDN #EDG #WebsitePerformance"
Have Your Site CRO Assessed Live by a Director of eComm Product Management https://www.youtube.com/
Like CommentTo view or add a comment, sign in
1,082 followers
View Profile
FollowMore from this author
- Solving Data Quality through Data Consolidation BUCS Analytics 1y
- BUCS makes data consolidation simple with a 5-step data connection process BUCS Analytics 1y
- The Office of the CFO Concept: Greater Expectations and Evolving Responsibilities BUCS Analytics 1y
Explore topics
- Sales
- Marketing
- Business Administration
- HR Management
- Content Management
- Engineering
- Soft Skills
- See All
