Customer Lifetime Value (EN)

Customer Lifetime Value Calculation

flowchart TD     A[Customer data] --> B[Average purchase value]     A --> C[Purchase frequency]     A --> D[Duration of customer relationship]     B --> E[CLV calculation]     C --> E     D --> E     E --> F[CLV = Average purchase value × Purchase frequency × Duration]     F --> G[Strategic decisions]     G --> H[Marketing budgets]     G --> I[Customer retention measures]     G --> J[Product development] 

In Context

• Typically used together with customer value analysis, customer segmentation, and retention rate
• Related to: Customer Acquisition Cost (CAC), Return on Investment (ROI), Churn Rate
• Example use case: An e-commerce company calculates CLV to decide which customer segment should be prioritized for an advertising campaign