Customer Lifetime Value CLV 6 stages

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  • Business model

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The customer lifetime value (CLV) is a marketing metric that measures the total revenue generated from an individual customer over their entire lifetime. This includes purchases, additional purchases, and the value of any referrals.

The CLV is calculated by taking the net present value of the future profit generated by a customer over their entire lifetime and dividing it by the cost to acquire that customer. The CLV can vary depending on how long you expect your customers to stay with your company. If you want to calculate CLV for a particular product, then you must calculate how much revenue that product generates per customer per year.

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