Customer Lifetime Value (CLV) is a metric used in e-commerce and marketing to determine the total revenue a business can expect to earn from a customer over the entire duration of their relationship with the company. It takes into account the average purchase amount, purchase frequency, customer retention rate, and other factors to calculate the total value a customer brings to a business over their lifetime. CLV is important because it helps businesses understand the long-term value of acquiring and retaining customers, which can guide decision-making in terms of marketing strategies, customer service efforts, and product development.
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