WHAT IS CUSTOMER LIFETIME VALUE (CLV)?
CLV, or Customer Lifetime Value, is a crucial metric in marketing that represents the total predicted revenue a customer is expected to generate over the entire duration of their relationship with a business. It helps companies understand the long-term value of acquiring and retaining customers. It guides strategic decisions, resource allocation, and personalized marketing efforts. By calculating CLV, companies can assess the return on investment for their customer-related strategies, identify high-value customers, and build lasting relationships, ultimately driving sustained growth and profitability in a customer-centric approach.