Customer Lifetime Value (CLV) Explained

What is Customer Lifetime Value (CLV)?

Customer Lifetime Value (CLV) is a metric that estimates the total revenue a business can expect from a customer throughout their relationship. It helps businesses assess how much they should spend on acquiring and retaining customers.

In advertising, understanding CLV allows marketers to optimize their campaigns by focusing on high-value customers and allocating budgets more effectively to maximize long-term profitability.