Customer Lifetime Value (CLV)

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Customer Lifetime Value (CLV), also known as Lifetime Value (LTV), is a crucial metric in marketing and business that quantifies the total value a customer generates for a company over the entire duration of their relationship. It is a forward-looking metric that considers the revenue a customer is expected to bring in, minus the costs associated with acquiring and serving that customer. CLV provides insights into the long-term impact of customer relationships on a company’s financial health and growth strategies.

Customer Lifetime Value (CLV) is a strategic metric that quantifies the long-term value of customer relationships to a business. It guides decisions related to marketing, customer service, retention efforts, and overall business growth strategies by providing insights into the financial impact of customer engagement over time.

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