Posted inAll private sectors / Customer / Marketing

Customer lifetime value

Definition of this KPI:
The total predicted revenue a business can expect to earn from a customer throughout their entire relationship. CLV is a valuable metric for companies seeking to assess the long-term value of acquiring and retaining customers.

  • This KPI can be calculated as: Average Purchase Value × Purchase Frequency × Customer Lifespan
  • The KPI will be measured as: financial value (e.g. €, $)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Long-term relationship with profitable customers
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