Customer lifetime value
Measuring the value of customer loyalty
What is customer lifetime value?
Customer Lifetime Value (CLV or LTV) is a metric that predicts the net profit your brand will realize over the entire lifespan of that specific customer relationship. It measures how much revenue you can expect one customer to generate over the course of your business relationship.
How to determine customer lifetime value
Measuring customer lifetime value requires your business to calculate all of the activities you undertake to acquire, serve, and retain your customers from brand awareness to win-back engagements. Then it weighs those costs against how much revenue you are able to generate with that relationship.
For further information on customer lifetime value
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