Customer Life Time Value

Customer lifetime value (CLTV) is one of the most important metrics to measure at any growing company.

By measuring CLTV in relation to the cost of customer acquisition (CAC), companies can measure how long it takes to recoup the investment required to earn a new customer — such as the cost of sales and marketing.

Customer lifetime value (CLV, or CLTV) is the metric that indicates the total revenue a business can reasonably expect from a single customer account throughout the business relationship.

Company's total revenue in a period of 1 year in €
Number of orders throughout that same period
Number of customers throughout that same period
The number of years a customer continues purchasing from your company.
This number will give you the revenue you can reasonably expect an average customer to generate for your company throughout their relationship with you.