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Retailers carefully track CAC to find out the effectiveness and effectivity of their advertising initiatives and to know the value that each customer brings to their business. Lifetime Worth represents the total amount of money a customer is predicted to spend with a business throughout their relationship. LTV helps retailers make strategic decisions about advertising and marketing spend, sales, and product development by predicting long-time period profitability from buyer relationships. It's calculated by taking a look at the common transaction value, buy frequency, and customer lifespan. Common Transaction Worth is a retail sales metric that measures the average quantity spent by customers per transaction during a specific interval.

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