A Lifetime Value(LTV)formula is based on which two factors?
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Correct answer: User spend rate and the average lifetime duration of users with the company..
Why this is the answer
Lifetime Value (LTV) is a crucial metric that estimates the total revenue a business can reasonably expect from a single customer account over the projected duration of their relationship. Therefore, it is fundamentally based on how much a user spends (user spend rate) and for how long they remain a customer (average lifetime duration). The conversion rate (CVR) is important for acquiring customers but doesn't directly measure the value after conversion. The total number of new users gained is a volume metric, not a value metric per individual user's lifetime.
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