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Post by arfanho7 on Feb 22, 2024 4:28:22 GMT
Many owners associate marketing with setting up ads and setting budgets. But they do not bring profit but quick income. If your strategy is successful it will work for you even after paid advertising PPC – Pay Per Click is stopped. Because by building a loyal customer base profits come from customer lifetime value CLV. What is CLV and why is it important for business CLV Customer Lifetime Value is a business metric that shows the total amount of money a customer is expected to spend on your brand s products or services throughout their lifetime. But how exactly do America Cell Phone Number List you measure the value each customer contributes to growing the business CLV is calculated by multiplying a customer s average purchase value by the number of times they are expected to make a purchase in a given period. This result is then multiplied by the expected length of the customer s relationship with your business. How to calculate CLV for your business Lifetime Value is CLV Average Purchase Value x Number of Purchases in a Specific Period x Expected Customer Relationship Duration Here is an example of how to use the formula to calculate CLV Imagine you have a business that sells coffee. The average purchase value is BGN and the average customer makes purchases a year. Assuming your customers stay loyal to your brand for years their CLV is CLV BGN x purchases per year x years BGN This means that you can expect to generate BGN from each customer throughout their lifetime as your customer.
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