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CLV (Customer Lifetime Value)

Definition

CLV is one of the key statistics that are tracked in customer experience. It represents the total amount of money a customer is likely to spend on your products. CLV uses data from your accounting and Business Intelligence and is the key to successful financial planning (bottom-up approach). This metric tells us how much a customer spends over the entire time they shop with us. From an accounting perspective, it is therefore a cash flow projection that will greatly facilitate long-term financial planning.

Application

CLV Calculation Formula:  

CLV = (average purchase value * number of times a customer purchases each year * average length of customer relationship in years)

CLV allows you to measure the financial impact of marketing campaigns , initiatives and other activities. CLV measures the value a person brings to a business in all their interactions over time - not just in a single transaction. By focusing on this metric, it's a sure-fire way to attract more customers and ensure ongoing interaction with them. 

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Matej Karaba

Long-term Impact & Business Consultant

Michal Lubelec

E-commerce Performance & Strategy Consultant

Marek Ďuračka

Business & Marketing Strategy Consultant

  • Matej Karaba

    Long-term Impact & Business Consultant

  • Michal Lubelec

    E-commerce Performance & Strategy Consultant

  • Marek Ďuračka

    Business & Marketing Strategy Consultant

Matej is Long-term Impact & Business Consultant and will help you with:

  • Coverage of the marketing mix potential
  • Long-term sustainability
  • Development of a business strategy
  • Creativity in technology
  • Managing IT projects
  • UX/UI and SEO

Michal is Consultant for E-commerce Analytics and Measurement and will help you with:

  • data and analytics settings
  • bidding and budget planning
  • campaign automation

Marek is Social Media Consultant will help you with:

  • Facebook
  • Instagram
  • ROI Hunter