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Customer Lifetime Value (CLV) is the total revenue a business expects to earn from a single customer throughout their entire relationship.
It’s a crucial metric for understanding the long-term value of acquiring and retaining customers.
A famous example of CLV in action?
American Express in the 1990s. They used data analytics to calculate the lifetime value of their credit card customers, identifying the most profitable ones. This allowed them to fine-tune their marketing, offering better services and targeted promotions to high-value customers—boosting loyalty and profits!
If you want to read more about phrases about e-commerce, read this post from my Gabi’s Gab publication: Business English Unlocked: E-commerce.