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What is Customer Lifetime Value (CLTV)?

What is Customer Lifetime Value (CLTV)?

What is Customer Lifetime Value CLTV

It represents the total amount of money a customer is expected to spend on your business or her products during her life. This is important because it helps you decide how much money to invest in acquiring and retaining new customers.

CLTV = Gross margin% x (1 / Monthly cancellation trend) x Average monthly customer revenue

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