What is customer lifetime value?
The basic concept of customer lifetime value (CLV) is relatively simple to understand – it is the total profit made by a firm (or brand) over time from an individual customer. In other words, how much profit is the customer worth to the firm?
Customer lifetime value challenges
However, customer lifetime value (CLV) can be difficult to calculate, as there are multiple considerations and it is quite dependent on forecasts of consumer behavior and the likely success of future marketing campaigns. As always, predicting the future in a dynamic marketing environment is always a challenging exercise.
Key topics and articles to review on this website
The free Excel template designed for CLV
The quick online CLV calculator
The difference between customer profitability analysis and customer lifetime value
And the relationship between CLV and brand equity