Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a financial metric that calculates the total revenue a business can expect to generate from a single customer over the duration of their relationship. Practitioners use historical transaction data, customer retention rates, and purchase frequency to project future earnings and identify which customer segments are most profitable. Organizations apply CLV analysis to optimize marketing spending, determine appropriate customer acquisition costs, and prioritize retention efforts for high-value accounts.

Customer Lifetime Value (CLV) sits under Business Model Design in the Entrepreneurship & Venture domain of the Luminid skills catalogue.

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