Customer Lifetime Value (CLV) is one of the most important marketing metrics in growing companies.
Definitely, any organization to make an initial investment to attract the audience; But how long does it cost to repay the purchase? How is it acceptable to be absorbed and loyally satisfied to be evaluated? What is the most financially viable way to maintain your business?
CLV is here to answer these questions. Profitable is important if you are recruiting and retaining your organization; So you need to know CLV, how to calculate it, and ways to improve it. So stay tuned for this article.
What is the customer lifetime value or CLV?
Customer lifetime value is actually a measure of how much income a person has earned for you during the time they have been in your business as a customer; That means every customer is a wallet! As is clear from the CLV definition, two factors are important: the value of the customer’s purchases and its longevity, so on the other hand, the CLV can also be considered a symbol of customer satisfaction.
It is clear that the longer a customer repeats their purchase, the longer their business life, so the better the customer service and response to their needs, the more loyal the customer will be and the less they will lose or leave.
The CLV shows how much it costs to maintain each customer. For example, if the value of a customer is around 500 thousand tomans, spending a budget of one million tomans to maintain and return him to the purchase cycle is meaningless! Thus, CLV can help identify a valuable customer segment.