Customer Lifetime Value (CLTV)

Marketing dictionary

Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is the amount of revenue that a typical customer will generate for a brand during the customer’s entire engagement with that brand. For goods/services used on a weekly basis such as milk or purchasing tickets to travel on public transport, the following equation can be used to determine the CLTV: Purchase price X Total number of times the goods/services has been purchased over the lifetime of the consume = CLTV

See: Customer Acquisition Cost (CAC)

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