What Is Customer Lifetime Value (CLV): All You Need to Know

Each client is important, but some lay the foundation and keep you afloat.

They exist at the core of your business – sometimes they are responsible for most of your revenue; in other cases, a valuable customer that stays with you is more important than bringing tens of new ones.

How to identify them and use the knowledge of their lifecycle to repeat that success? The answer is measuring CLV – an incredibly important metric in every marketeer’s book. What is customer lifetime value? Read on to find out.

CLV meaning is, relatively speaking, how much a customer is worth to your business. When the client first receives any information about your business, service, or ware and decides to check it out, their lifetime value begins to accumulate. It sums up the amount of revenue a customer has brought to you, creating a clear picture of the dynamic between your company and them.

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