What is Customer Lifetime Value?

This metric is a prediction of the total value and profit an eCommerce company would make from a lifetime relationship with a customer. It is calculated by multiplying the average purchase value, average purchasing frequency, and average lifetime of the target audience.
Customer lifetime value is an essential metric for eCommerce website companies because it encourages businesses to focus on the long-term health of their customer relationships rather than quarterly revenues.

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eCommerce Glossary

What is Customer Lifetime Value?

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eCommerce Glossary

What is Customer Lifetime Value?

Want to read more on this topic? Check out our related resources:

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