How does the Customer Lifetime Value (CLV) work?
The Formula
Average Order x Frequency x LifespanExample: $50 x 4 times/yr x 5 yrs = $1000 CLV.
Frequently Asked Questions
Why does CLV matter?
Determines how much you can spend to acquire a customer.
Customer Lifetime Value (CLV)
Project how much a single customer is worth over their entire relationship with your business based on average order value and purchase frequency.
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