LTV / CLV
- Narrativ.Design
- Dec 23, 2019
- 1 min read
LTV / CLV (Customer Lifetime Value) is the total value or profit a business expects to earn from a customer throughout the entire relationship.
Formula:
CLV = Average Purchase Value × Purchase Frequency × Customer Lifespan
For profit-based calculations, multiply the result by the gross margin.
Simply put: How much one customer is worth to the business over time.
