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Customer Lifetime Value Calculator
Customer lifetime value (CLV) is the total revenue you can expect from a customer over the whole relationship. It reframes marketing spend: if you know CLV, you know how much you can afford to acquire a customer.
—Customer lifetime value
How it works
How to calculate customer lifetime value
CLV = Average order value × Purchases per year × Customer lifespan
A high CLV means you can outbid competitors on acquisition and still profit. Improving retention and repeat purchase rate raises CLV — often cheaper than winning new customers.
FAQ
Frequently asked questions
If a customer is worth $1,440 over their lifetime, a $150 CPA is a bargain. CLV sets your acquisition ceiling.
Improve retention, increase order value with upsells, and encourage repeat purchases with email and loyalty programs.
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