oboloo Glossary

Customer Lifetime Value Equation

oboloo Glossary

Customer Lifetime Value Equation

Customer Lifetime Value (CLV) is an important equation for any business to understand. It refers to the amount of money a customer is expected to spend over their lifetime with your company. The CLV equation can tell you how much to invest in marketing and customer acquisition as well as which customers will be the most profitable long-term investments. By calculating CLV, businesses can generate targeted strategies that attract high-value customers and nurture profitable relationships. Ultimately, this helps them to maximise their ROI and ensure future success.