Customer Lifetime Value (CLV): Customer Lifetime Value is a prediction of the total net profit a business will make from a customer during their entire relationship. It helps companies understand the long-term financial value of each customer and make informed decisions about customer acquisition, retention, and targeting strategies. Calculating CLV involves factors such as average purchase value, purchase frequency, and customer lifespan. Increasing CLV is a vital goal for businesses, as it demonstrates their success in building valuable and long-lasting relationships with customers.
