Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a metric that estimates how much revenue a business can expect to earn from a customer over the entire period of their relationship. It considers factors like how often they buy, how much they spend, and how long they stay a customer. Understanding CLV helps businesses make smarter decisions about marketing, customer service, and retention efforts, aiming to maximize the profit generated from each customer over time. Essentially, CLV reveals the long-term value of a customer beyond just a single purchase.