Glossary B2B
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is a key metric that estimates the total revenue a business can expect from a customer throughout their relationship. It helps companies assess long-term profitability, optimize marketing spend, and improve customer retention strategies.
The formula for CLV can vary, but a basic calculation is:
CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan
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