Business Analytics
Customer lifetime value (CLV) is a metric that estimates the total revenue a business can expect from a single customer throughout their entire relationship. This metric helps businesses understand the long-term value of acquiring new customers, enabling better decision-making regarding marketing strategies and resource allocation. By aligning this value with business objectives, organizations can optimize customer acquisition costs and retention strategies to maximize overall profitability.
congrats on reading the definition of customer lifetime value (CLV). now let's actually learn it.