Customer Lifetime Value

The Marketing Automation and Web Personalization Glossary

What exactly is meant by the term:

Customer Lifetime Value


The Customer Lifetime Value or CLV is a typical metric of ecommerce and retail. It is a measurement method designed to understand what value a customer will generate over time, making a hypothesis based on their purchasing behaviour. The CLV is calculated by multiplying the average value of the user over a period of time, taking into account the probability of repurchase of products. If you want to go deeper we will talk about it at length here.

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