What is Customer lifetime value (CLV)?
Customer lifetime value is the total revenue, or profit, a customer is expected to generate over the whole time they buy from you.
It shows how much you can afford to spend to win a customer, and why repeat purchases matter. Raising the number of orders per customer lifts CLV without extra acquisition cost.
Email is one of the cheapest ways to do that, through post-purchase, replenishment and winback flows.
A worked example.
A tea brand discovers that customers who place a second order within sixty days go on to buy far more over time than those who do not. It builds a post-purchase flow aimed at securing that second order.
Common mistakes.
- Optimising only for the first order
- Treating all customers as equally valuable
- Calculating CLV from too little data
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