WebJan 21, 2024 · At the surface, it’s a simple idea: Customer lifetime value (CLV) is the monetary worth of a customer to your business for the length of their patronage. However, digging deeper into CLV reveals layers of complexity that speak to how essential the concept is to the continued success of your product. A customer’s lifetime value is tied … WebNov 3, 2024 · CLV is at its most valuable when it is combined with customer acquisition cost . CAC is the average cost of getting one new paid customer. CLV is often combined with CAC as the CLV to CAC ratio. A CLV to CAC ratio of 3 (which means you earn $3 in CLV for every $1 spent on CAC) is generally considered sustainable.
Customer Lifetime Value and Customer Lifetime Care
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