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Glossary / Lexicon

What is Customer Lifetime Value (CLV)?

12/09/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS
Customer Lifetime Value (CLV) is a measurement that provides information about the value of a customer to a company. It measures the total expected revenue that the company can expect from a customer throughout the customer relationship. This includes not only the value of a single purchase, but also the value of recurring purchases a customer makes during their relationship with a company. CLV can help a company optimize its marketing strategy by prioritizing its investments in customers who have a higher CLV.
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