Customer Lifetime Value - Concept, Calculations and Examples - Simplest Explanation Ever

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In this tutorial, Mr. Simplifiers will teach us about Customer Lifetime Value (CLV). CLV is the total revenue generated minus the cost of acquiring and retaining a single customer. It can be used to identify profitable customers and to develop relationships with them. The basic formula for CLV is customer revenue minus the cost of acquiring and retaining the customer. Companies need to ensure that the cost of acquiring and retaining customers is less than the amount of money they make from them to be profitable.