Customer Lifetime Value and Churn
Customer lifetime value (CLV) is the foundation of recurring revenue business models: you recoup the costs and profit from a customer over their lifetime using your product, not from a single transaction. CLV is important because you need to make sure that the costs you spend to acquire and maintain your customers are worth it! If you calculate CLV correctly, you can use it strategically to evaluate the ROI of different acquisition and retention tactics.…