Glossary > Lifetime Value(LTV)
Lifetime Value refers to the total amount of money a customer is expected to spend with a business over the entire duration of their relationship. Also known as Customer Lifetime Value(LTV).
Lifetime Value is a metric that estimates the total revenue a customer will generate throughout their relationship with a business. It helps in understanding the long-term value of acquiring and retaining customers. Understanding CLV allows businesses to gauge the profitability of customer relationships, allocate marketing resources effectively, and develop strategies for customer retention and growth.
Enhance customer experience, offer personalized services, and implement loyalty programs. Focus on providing consistent value to encourage repeat purchases and long-term engagement.
How is Lifetime Value(LTV) calculated?
CLV is calculated by multiplying the average purchase value, purchase frequency, and customer lifespan.
What factors influence Lifetime Value?
Factors include customer retention rates, average order value, and purchase frequency.
How can I increase my customers’ Lifetime Value?
Improve customer satisfaction, offer upselling and cross-selling opportunities, and maintain strong customer relationships.
How to Use CLV for Better Marketing Decisions
What Customer Lifetime Value (CLV) Is & How to Calculate It
Want to enhance your customer relationships?