Customer Lifetime Value (CLV) is a prediction of the net profit attributed to the entire future relationship with a customer, important for assessing how much a company should spend to acquire a customer.

CLV helps businesses understand the value a customer brings over time. This way, companies can decide how much money to spend on attracting and keeping customers.

How do you calculate customer lifetime value CLV? To calculate CLV, you add up all the profits a customer will bring to your business in the future. Then, subtract the costs of attracting and keeping them.

What is the customer lifetime value of net profit? The customer lifetime value of net profit is the total money a company expects to make from a customer. This includes all future sales minus the costs involved.

What is the LTV lifetime value formula? The LTV formula is a way to calculate how much profit a customer will bring over their entire relationship with a company. It considers future sales, costs, and profit margins.

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Knowing CLV helps businesses focus on long-term profits. It guides them on how much to spend on marketing and customer service to keep profitable customers.

CLV is about understanding the worth of a customer in the long run. It helps businesses make smart decisions about spending money on getting and keeping customers.