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Retailers carefully track CAC to find out the effectiveness and efficiency of their marketing initiatives and to grasp the worth that each customer brings to their enterprise. Lifetime Worth represents the whole amount of cash a buyer is expected to spend with a business throughout their relationship. LTV helps retailers make strategic selections about marketing spend, sales, and product development by predicting long-time period profitability from customer relationships. It is calculated by taking a look at the typical transaction value, buy frequency, and customer lifespan. Average Transaction Value is a retail sales metric that measures the typical quantity spent by customers per transaction during a specific period.

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