Customer Lifetime Value

Customer Lifetime Value (CLV) is a measure of the total worth of a customer to a business over the entire time they engage with that company. It considers how much money a customer is likely to spend, the duration of their relationship with the business, and the costs associated with acquiring and serving them. Understanding CLV helps businesses make informed decisions about marketing, customer service, and overall strategy, as it highlights the long-term value of investing in customer relationships rather than just focusing on immediate sales.