Customer Lifetime Value (CLTV) represents the total revenue a company can expect from a single customer throughout their entire relationship. It takes into account the average purchase value, frequency of purchases, and the duration of the customer’s relationship with the company.For example, consider a B2B software company providing subscription-based project management tools. They calculate the CLTV by analyzing historical data from their customer base.For instance, they may find that the average customer stays subscribed for two years, pays a monthly fee of $100, and makes additional purchases or upgrades totaling $200 annually.Thus, the CLTV for each customer would be $2,400 ($100/month * 12 months/year * 2 years + $200/year).With this information, the company can make informed decisions about customer acquisition costs, pricing strategies, and retention efforts to maximize their CLTV and overall profitability.Use advanced Customer Lifetime Value (CLTV) calculator.