Customer Lifetime Value

Customer lifetime value (CLV) is a metric that measures the total amount of revenue a customer is expected to generate over the course of their relationship with a business. CLV takes into account factors such as the customer's purchase history, frequency of purchases, and the likelihood of future purchases. This metric is important because it helps businesses determine how much they can afford to spend on customer acquisition and retention. By increasing customer lifetime value, businesses can increase their overall profitability.