What does it mean?

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What does it mean?

Customer Lifetime Value helps you identify your most important customers, those who generate the most value for your business, and direct your resources (in terms of offers, communication and opportunities) towards them to further retain them and increase their value.

In the world of marketing, it is a rule to always keep in iran phone number list mind: it is easier and less expensive to retain an existing customer, rather than push a new contact to become one . Acquiring a new customer is in fact 6-7 times more expensive and a 5% increase in loyal customers can increase company profitability by 25-95% (Source: Harvard Business Review ).

In this article, we’ll go in-depth: what CLV is, how to calculate it, and how to use it to support the success of your business.



What is Customer Lifetime Value?
CLV is an economic indicator that measures the amount of money that a single customer will bring to your company over time. This value helps you understand how important each customer is to your business and allocate your marketing and promotional resources towards the most profitable customers.

Customer Lifetime Value is a long-term indicator and takes into account not only current sales, but also the customer's future potential.