What is Customer Lifetime Value (CLV) in Retail? Explained

Customer lifetime value (CLV) is a critical metric that quantifies the total anticipated revenue a business expects to generate from a customer throughout their entire association. For retailers, CLV goes beyond the initial transaction and encompasses the potential for repeat purchases, loyalty, and the overall value a customer brings over time. By calculating CLV, retailers can tailor their marketing strategies to nurture customer relationships, prioritize customer satisfaction, and implement initiatives to boost retention. Understanding and maximizing CLV is instrumental for retailers in creating sustainable, long-term profitability and fostering a loyal customer base.