Q » How to calculate customer lifetime value?

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Sobonix

19 Mar, 2026

412 | 8

A » Customer Lifetime Value (CLV) is calculated by multiplying the average purchase value, purchase frequency, and customer lifespan, then subtracting the customer acquisition cost. The formula is CLV = (Average Purchase Value × Purchase Frequency × Customer Lifespan) - Acquisition Cost. This metric helps businesses evaluate the long-term profitability of customers and optimize marketing strategies accordingly.

Accountsway

20 Mar, 2026

84 | 7

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