The CLV is the total worth of the customer over their lifetime. It is important to measure this metric because it will help you understand how much a customer is worth to your company. In order to calculate the CLV, you need to find out what the average revenue per customer (ARPC) is, and then multiply that by their retention rate. You also need to take into account how long it takes for customers to make a purchase and how likely they are to churn. There are different ways that you can measure Customer Lifetime Value CLV. The most popular way of doing so is by using a cohort analysis, where you assign each customer with a value based on when they made their first purchase.