Calculating customer lifetime value (CLV) multiplies a customer's average purchase value by their purchase frequency, then by their average customer lifespan. This metric reveals the total revenue you can expect from a single customer over time. It's a powerful number that should steer your entire growth strategy.
Why CLV Is a Critical Growth Metric
Customer lifetime value is a predictive tool that signals the health and scalability of your business. Understanding CLV helps you make smarter, evidence-based decisions, from marketing spend to product development.