What is customer lifetime value (CLV) ?

CLV measures the total revenue a business can expect from a customer throughout the entire duration of their relationship.

Customer Lifetime Value (CLV or LTV) is the total net revenue a company expects to generate from a customer over the full course of their relationship. It is a key metric for understanding acquisition cost efficiency and long-term profitability.

Example: If a customer pays $500/month and stays for an average of 24 months, their CLV is $12,000.

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