What is Customer Lifetime Value?

The CustomerLifetime Value (CLV orLTV) is the total net sales that an average customer generates throughout the entire relationship with your company.CLV is one of the most strategic metrics in marketing because it determines the maximum acquisition cost per customer.How do you calculate CLV?Simple calculation:

CLV = average order

value x purchase frequency x average customer duration in years.A more advanced calculation also takes into account margin, churn rate and the time value of money.CLV and maximum acquisition costsIf a customer’s CLV

is 2,000 euros and your gross margin is 40%, the CPA

should be a maximum of 800 euros to remain profitable.CLV allows you to rationally decide how much you can spend on SEA, SEOCPAretention programs, upsell and cross-sell, loyalty offers and an excellent customer experience.Doubling the CLV effectivelySEAyourSEOand LTV?Same metric, different abbreviation.CLV (Customer LifetimeCold Email(Lifetime Value) are used interchangeably.How do I increase the CLV

the fastest?By

reducing churn through better onboarding and proactive customer follow-up.More at developers.google.com/search.