The term Customer Lifetime Value (CLV) is particularly at home in the fields of e-commerce and digital retail, digital marketing, and digital transformation. It describes the estimated total value that a customer brings to a company throughout the entire business relationship.<\/p>\n
Practically speaking, this means that Customer Lifetime Value (CLV) indicates how much a customer spends on products or services on average over time. Companies use this figure to better plan how much they should spend on acquiring and servicing a customer. If the CLV is high, it is usually worth investing more in customer loyalty.<\/p>\n
A clear example: An online shop recognises that loyal customers spend \u20ac300 on average per year and stay for an average of 5 years. The customer lifetime value then amounts to \u20ac1,500. This helps the company to optimise marketing and service costs.<\/p>\n
In summary: Customer Lifetime Value (CLV) is an important tool for determining the long-term value of a customer and strategically building successful customer relationships.<\/p>","protected":false},"excerpt":{"rendered":"