Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) predicts the total revenue a business can expect from a single customer account throughout the relationship.
What Is CLV?
Customer Lifetime Value (CLV or LTV) is a metric that estimates the total revenue a customer will generate during their relationship with your brand. It helps businesses understand how much to invest in acquiring and retaining customers.
Why CLV Matters
Brands with high CLV can spend more on customer acquisition and still maintain profitability. Improving retention by just 5% can increase profits by 25-95%.