Handbook Customer Lifetime Value (CLV)

Everything you need to now about the Customer Lifetime Value (CLV)

There’s a good chance you’ve heard of Customer Lifetime Value (CLV) or Lifetime Value of a Customer (LTV) before, and an even higher chance that you’ve never calculated it. CLV (aka LTV) is one of the most valuable metrics in eCommerce/retail, but it’s also one of the most confusing.


By knowing CLV, merchants are able to determine the value of each acquired customer to their store in the long run. Merchants also have the advantage and insight to knowing exactly what they should be spending on their advertising to acquire said customers, and which segments to target.


The overall goal for merchants and retailers is to increase their CLV. Higher CLV, merchants are better able to retain customers and encourage them to purchase more. Wouldn’t you like to know how much each of your customers are worth to your business, to know their true value? Wouldn’t you like to know how much to spend on your advertising given your certain set of customers? Sounds like an impossible thing to measure, or find out - but in reality it is quite possible. The objective of this ebook is to try and explain a complicated subject in terms that merchants can understand.




Customer Lifetime Value Definition

Why use CLV?

Why doesn’t everybody use CLV?

Calculating CLV

CLV: Simple & Inexpensive

Variables for CLV

CLV: Simple & Inexpensive - Part 2

CLV: Accurate & Inexpensive Resources

CLV: Simple & Accurate

What can you do with CLV?

Measuring and improving with CLV



Language: English
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Authors: Docent Ecommerce

Document type: eBooks

Publication date: 10-10-2017

Number of pages: 28

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