CLV (Customer Lifetime Value)

Customer Lifetime Value (CLV) is a metric that estimates the total revenue a business can expect from a customer throughout their relationship with the company. It takes into account factors such as purchase frequency, average order value, and customer retention duration. By understanding CLV, businesses can make informed decisions about marketing budgets, customer service, and overall strategy, ensuring they invest wisely in acquiring and retaining customers. In essence, CLV helps organizations gauge the long-term value of their customer relationships, leading to better financial planning and growth strategies.