How to Calculate Customer Lifetime Value CLV

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In order to calculate the customer lifetime value, you need to know the amount of money that a customer has spent with your company. To calculate the customer lifetime value, you need to divide this figure by the number of customers who have made purchases. This will give you a measure of how much revenue is generated per customer.

The CLV is calculated by dividing the total revenue that a company has received from its customers over their lifetime by the total number of customers it has had in that period. The formula for calculating CLV is as follows: CLV=Expected Average Revenue Per Customer*Retention Rate

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