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Customer Lifetime Value (CLV)

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Published on

Jul 25, 2025

eCommerce

Customer Lifetime Value (CLV)

The total revenue a business expects from a customer over their entire relationship.

Customer lifetime value estimates the net profit generated by a customer throughout their engagement with a brand. Understanding CLV helps eCommerce businesses prioritise marketing spend, tailor retention strategies, and focus on long-term loyalty rather than one-time sales. Increasing CLV can significantly boost profitability by encouraging repeat purchases and upselling.

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