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 LifespanThe KPI will be measured as: financial value (e.g. €, $)How to interpret the KPI: higher is betterThe strategic objective to measure with this KPI: Long-term relationship with profitable customers
