Customer lifetime value (CLV) is a measure of the total profit generated by a customer throughout their relationship with your brand. This can be calculated using several factors, including how much revenue each customer generates, how long they keep that revenue flowing in, and what other costs are associated with them. The higher a company’s CLV, the better positioned it is to survive in today’s competitive marketplace. Here are four ways marketers can benefit from CLV analytics.

Improving marketing ROI

Customer lifetime value (CLV) is the total revenue generated by a customer across the entire length of their relationship with your business. It’s also a key metric for marketers to be aware of because it can help them improve marketing ROI and optimize marketing spending.

The CLV analysis process starts with determining the average annual revenue per user (ARPU). This is calculated by dividing total annual revenue by the …