Customer Lifetime Value Explained In 3 Letters: CLV
You’ve probably heard the term “customer lifetime value” (CLV) before, but what does it really mean? And more importantly, how can you calculate it for your own business?
CLV is a metric that measures how much a customer is worth to your business over the entire course of their relationship with you. It takes into account factors like customer purchase frequency, average order value, and customer retention rates.
In this article, we’ll break down CLV and show you how to use it for your own business.
What is the customer lifetime value?
Customer lifetime value (CLV) is the total amount of revenue a customer generates throughout their relationship with your business. It’s a key metric for measuring the financial value of customers. CLV estimates how much you can expect to earn from each customer over time, based on their behavior and purchasing patterns.
CLV doesn’t just focus on your current …
5 Reasons Why Customer Success Shouldn’t Be Ignored
Customer success is a big deal. It’s not just something that happens at the beginning of a relationship and then goes away. If your business is going to be successful, you need to have a team that focuses on keeping customers happy and buying more products from your company.
Keeping customers for life
You’ve heard it before, but customer retention is more profitable than customer acquisition. It’s a fact. And when you look at the numbers, it makes sense:
- Customers who are satisfied with your product are less likely to churn out of your funnel and go elsewhere—so you get more repeat business from them.
- When you have a loyal stream of customers coming back again and again, they may be willing to pay more for additional features or upgrades because they know how much value your product provides them.
- Plus, happy customers tell their friends about their experience