Boosting CLV boosts revenue, improves retention, breeds loyalty, identifies ideal customers, reduces acquisition costs, highlights room for product/service enhancements, attracts investors, and makes a business profitable.

Your Customer Lifetime Value should be more than 3x or more than your Customer Acquisition Cost. In other words, a 3:1 ratio keeps you safe.

By upselling and cross-selling, offering lasting customer experiences, building strong loyalty programs, keeping a solid feedback system, improving onboarding, providing value-based content, and retargeting.

Historic CLV is calculated from past customer behavior and transactions. Predictive CLV estimates the future value of a customer based on predictive modeling techniques.

Total revenue earned in a period / Total no. of orders placed in a period.

CLV is useful to any any and all kinds of businesses — small, medium, and big organizations with varying business models, products, and services.