What is customer lifetime value?
CLV measures the total revenue a business expects from a customer over the entire relationship.
Why is CLV important?
It helps businesses understand long term profitability and guide marketing spend.
How is CLV calculated?
It combines average purchase value, purchase frequency, and customer lifespan.
How do businesses increase CLV?
They improve retention, upsell products, and enhance customer experience.
How does CLV relate to ad spend?
Businesses compare CLV to acquisition cost to ensure profitability.