Analytics & Data
The total revenue a business can expect from a single customer over the entire relationship.
Customer Lifetime Value
Glossary Term
Analytics & Data
32
Total Glossary Terms
In our reference library
CLV helps companies determine how much they should invest in acquiring and retaining each customer. It is calculated by multiplying average purchase value, purchase frequency, and average customer lifespan. SaaS businesses monitor CLV closely because high CLV relative to customer acquisition cost signals a healthy, sustainable model. Increasing CLV through upsells, better support, and product improvements is a primary growth strategy.
Concept Visualization
Real-World Examples
- 1Average revenue per user (ARPU)
- 2Subscription length
- 3Expansion revenue