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The total value of a client to a company over the span of their relationship is referred to as lifetime value (LTV) or customer lifetime value (CLTV/CLV). It’s an important step since keeping existing customers is less expensive than recruiting new ones, so increasing the value of your existing consumers is a great way to grow.
Knowing the CLV can help businesses in developing strategies for attracting new customers and retaining existing ones while maintaining profit margins.
One of the most important metrics to track as part of a customer experience program is the customer lifetime value (CLV). CLV is a statistic for measuring how valuable a customer is to your company over the long term, not just for a single purchase.
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