Analyze, Evaluate and Predict Lifetime Value of a Customer to Your Business and Bottom Line

Customer Lifetime Value (CLV) is a metric that represents the total revenue or profit a business expects to earn from a customer throughout their entire relationship. It is a way for businesses to evaluate and predict the long-term value of a customer. CLV takes into account the revenue generated from the customer's initial purchase, as well as any recurring purchases and additional services they may buy over time. Calculating CLV involves considering factors such as the customer's average purchase value, purchase frequency, and the expected duration of the business relationship. By understanding CLV, companies can make more informed decisions about customer acquisition, retention, and marketing strategies. It helps in identifying high-value customers and tailoring efforts to maximize their long-term value to the business.