Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is the estimated total revenue a customer will generate for a business over their entire relationship. It takes into account factors like purchase frequency, average order value, and customer retention rate. CLTV is a valuable metric for businesses as it helps them understand the long-term profitability of their customers and make informed decisions about customer acquisition and retention strategies.

Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV): EssentialsUX Planet