Customer Lifetime Value Assessment

Customer Lifetime Value Assessment

What it is: Customer Lifetime Value (CLTV) Assessment measures the total value a customer is expected to bring to your business over their entire relationship. This metric informs marketing spend, retention strategy, and segmentation.

Why it matters for ecommerce merchants: Acquisition costs are rising, and CLTV helps shift the focus from one-time purchases to long-term growth. Bain & Company found that increasing customer retention by just 5% can increase profits by 25–95%.

Challenges:

• Accurately calculating CLTV across multiple data sources
• Incorporating CLTV into campaign targeting and messaging
• Identifying which segments drive the most lifetime value
• Aligning retention efforts with CLTV insights