Free Tool
Customer Lifetime Value Calculator
Calculate the total revenue a customer generates over their entire relationship with your store.
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Formula
CLV = Average Order Value × Purchase Frequency × Customer Lifespan
What is Customer Lifetime Value?
Customer Lifetime Value (CLV or LTV) is the total revenue a customer generates over their entire relationship with your store. It's one of the most important metrics for sustainable e-commerce growth.
Knowing your CLV tells you how much you can afford to spend to acquire a customer (CAC). The golden rule: CLV should be at least 3x your CAC.
How to Increase CLV
- Email marketing: Build flows — welcome, post-purchase, win-back
- Loyalty programs: Reward repeat purchases
- Subscriptions: Turn one-time buyers into subscribers
- Cross-selling: Recommend related products
- Customer experience: Fast shipping, easy returns, great support