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Customer Lifetime Value (CLV)

Customer Lifetime Value (also known as CLV or LTV) is an estimation of the amount of revenue a customer will generate over the course of their relationship with your brand. It is a highly useful method eCommerce marketers use to estimate marketing costs and analyze an acquisition strategy. 

CLV is a projection to estimate a customer’s monetary worth to a business after factoring in the value of the relationship with a customer over time. CLV is an important metric for determining how much money a company wants to spend on acquiring new customers through specific channels and how much repeat business a company can expect from certain consumers.

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