Customer Lifetime Value Calculator

What Is Customer Lifetime Value?

Customer lifetime value (CLV) measures the total revenue a business can expect from a single customer over the entire relationship.

The formula is:

CLV = Average Order Value × Purchase Frequency × Customer Lifespan

Why Customer Lifetime Value Matters

Understanding customer lifetime value helps businesses:

• determine customer acquisition costs
• improve marketing strategies
• increase profitability
• optimize customer retention

How to Increase Customer Lifetime Value

Businesses can increase CLV by:

• improving customer retention
• increasing purchase frequency
• upselling and cross-selling
• improving customer experience