Customer Lifetime Value (CLTV) is a crucial metric that estimates the total revenue a business can reasonably expect from a single customer account over the entire duration of their relationship. It takes into account factors such as the average purchase value, the frequency of purchases, and the estimated length of the customer relationship. Understanding CLTV helps businesses identify their most valuable customer segments, make informed decisions about customer acquisition and retention strategies, and ultimately drive long-term profitability.
