In marketing analytics , customer lifetime value ( CLV ) is used to...

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In marketing analytics, customer lifetime value (CLV) is used to identify the total worth of a customer based on their relationship with the business. It is calculated by estimating the revenue each customer brings in every year, which helps businesses use their marketing resources to retain the most profitable customers.
This video discusses the advantages of estimating customer lifetime value and additional metrics such as customer acquisition cost (CAC), which helps businesses comprehend CLV more accurately. It gives examples of how to calculate CLV and CAC and how to use both to make better decisions. We answer questions such as: What is CLV? What is CAC? How to estimate CLV and CAC? What are the advantages of estimating customer lifetime value? How to build a healthier customer base? How do use CLV and CAC to boost business revenue streams? How to use CLV to develop marketing strategies?
Table of Contents:
0:00 – Introduction to customer lifetime value
0:50 – Calculate the customer lifetime value
1:24 – Customer acquisition cost
1:51 – Calculate the worth of the customer
2:23 – Boost business revenue stream
2:59 - Summary
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