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The average purchase value, average buy frequency, and average customer longevity are multiplied to get Customer Lifetime Value.

The higher the customer lifetime value, the better the earnings. You'll always have to spend money to get new clients and keep old ones, but the former is five times more expensive. You can boost your customer lifetime value once you know it.

CLV will assist you in achieving a balance between short- and long-term marketing objectives, as well as demonstrating a greater grasp of financial return on investment. CLV helps marketers make smarter decisions by encouraging them to spend less time obtaining low-value clients.

(Lost Customers x Total Customers at the Start of Time Period) x 100 is the churn rate calculation. For instance, if your company had 250 customers at the start of the month but lost 10 towards the end, you would divide 10 by 250. 0.04 is the answer.

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