Customer Lifetime Value (or CLTV) is a measure of the amount of repeat business an ecommerce company may expect to receive from an individual customer. It’s important because it shows how much money you can make if you continue to offer services to a particular customer over their entire lifetime. To calculate CLTV, you’ll need to know the purchase frequency, average order size, customer retention rate, and profit margin. By adding up these values over the entire customer journey – from initial purchase to every future purchase they make – you can determine your Average Customer Lifetime Value Ecommerce. This number gives you a better idea of the maximum potential value of each customer and allows you to plan for long-term success.