About CLV

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

Calculating customer lifetime value

Benefits of CLV

The required data to create customer lifetime value, such as customer revenues, costs and retention rates

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