Analytics
Customer Lifetime Value
Customer lifetime value (CLV) is the total revenue a business can expect from a single customer account over the entire relationship. It helps determine how much to invest in acquiring and retaining customers.
Examples
A subscription service calculates a CLV of $840 based on an average monthly payment of $35 and a typical customer lifespan of 24 months.
Best Practices
Increase CLV through upselling, cross-selling, excellent customer service, and proactive retention strategies.