What is customer lifetime value (CLV)?
Customer lifetime value (CLV) is the total revenue an average customer generates over the entire relationship with a business.
Definition
Customer lifetime value (CLV) is the estimated total revenue a single customer generates over the entire period they remain a customer, rather than the revenue from one single purchase.
Context
Where a conversion rate shows whether a website turns visitors into customers, CLV shows what that customer is worth afterwards. A low price per purchase can still be profitable if customers keep coming back; a high one off purchase is worth less if customers don't return.
CLV can only be measured reliably when customer data and purchase history come together in one place. With standalone tools (a webshop here, a separate CRM there) that calculation has to be done by hand. On a platform where orders, customer data and communication already come together, CLV becomes a figure that surfaces on its own instead of something pieced together after the fact.
This solves it
Fixed price, clear upfront, and we test extensively.
