Customer Lifetime Value (CLTV) is the total revenue or profit a business can reasonably expect from a single customer over the entire duration of their relationship.
In other words, it tells you:
How much each customer is worth beyond their first purchase
What you can afford to spend on acquiring new customers (CAC) and still stay profitable
Which customers or segments drive the most value
Getting the calculation and tracking in place for this metric is absolutely critical to growing a healthy, sustainable business.
Let’s learn how.