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CLV (or CLTV): Customer Lifetime Value

The estimated or historical lifetime value of a customer.  This is extremely important when estimating how much you can afford your customer acquisition cost to be. Calculate this number by dividing your company’s total revenue in a time period (usually one year) by the number of purchases over the course of that same time period. … Then, calculate LTV by multiplying customer value by the average customer lifespan.

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