Lifetime Value Generated

Customer lifetime value (CLV) is the total revenue you can expect from a single customer account throughout the lifetime of their relationship with your company. It is calculated based on total historical revenue and the length of the relationship. For a total Average Lifetime Customer Value metric, you will need to take the average of each company’s lifetime value in your portfolio. In many cases, this data will come from accounting software and records and not from the marketing department. This is an important metric for two reasons: it costs much less to keep a customer than to acquire a new one, and a good relationship with an existing customer often leads to organic growth with that customer.