Glossary
Glossary
Glossary
Customer Lifetime Value (CLTV)
Customer Lifetime Value (CLTV)
Definition
Estimates the total revenue a business can expect from a customer over the entire duration of their relationship. It is calculated by multiplying the average purchase value by the purchase frequency and the average customer lifespan. CLTV is important for determining how much to invest in acquiring and retaining customers.
Estimates the total revenue a business can expect from a customer over the entire duration of their relationship. It is calculated by multiplying the average purchase value by the purchase frequency and the average customer lifespan. CLTV is important for determining how much to invest in acquiring and retaining customers.
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