What is CLV?
The total revenue a business expects from a customer over the whole relationship.
Definition
CLV (Customer Lifetime Value)
CLV considers how much a customer spends, how often and for how long. It is usually compared with the cost of acquiring that customer.
CLV = average value per period x number of periods retained
Why it matters
It shows how much you can afford to spend to win and keep a customer.
Example
A customer who pays 1,000 a month and stays for two years has a lifetime value of 24,000.
FAQ
Answers to Your Frequently
Asked Questions
What is CLV?
The total revenue a business expects from a customer over the whole relationship. CLV considers how much a customer spends, how often and for how long. It is usually compared with the cost of acquiring that customer.
Why does CLV matter?
It shows how much you can afford to spend to win and keep a customer.
What is an example of CLV?
A customer who pays 1,000 a month and stays for two years has a lifetime value of 24,000.
How does LeadX help with CLV?
LeadX keeps every customer's history on one record, which supports repeat engagement and retention.
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