Customer Lifetime Value Write For Us – Customer Lifetime Value Is a measure of the total revenue or profit that a company can expect from a customer over the entire duration of their relationship with the company. CLV calculate by multiplying the average customer lifespan by the average customer value.
For example, a company’s average customer lifespan is ten years, and the average customer value is $1,000 annually. The company’s CLV would be $10,000.
How To Calculate Customer Lifetime Value?
There are a few different ways to calculate customer lifetime value. One common formula is:
CLV = average customer value * average customer lifespan
Another formula is:
CLV = (average purchase value * average number of purchases) * average customer lifespan
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