CLTV (Customer Lifetime Value)

Prediction of total revenue a business can expect from a customer relationship.

CLTV goes beyond single purchases to measure long-term customer worth. Calculation includes:

Average purchase frequency
Average order value
Customer lifespan
Acquisition costs
Retention costsModern CLTV calculations often incorporate:
Return rates
Customer service costs
Channel-specific behaviors
Loyalty program participationUnderstanding CLTV helps prioritize customer segments and optimize marketing spend across channels.

If you need a CLTV calculator, you can use the Pageblock Free CLTV Calculator Tool