How do you measure your online store’s success? Do you typically focus on things like sales and revenue?
While these metrics are useful for tracking the short-term performance of content and campaigns, they don’t always paint a complete picture of your business’ future. Even looking at your current sales numbers can sometimes leave you with just a fleeting glimpse of your true financial situation.
Customer Lifetime Value (CLV) is one of the most important factors in determining your business’ present and future success. It’s an often-overlooked metric that can accurately predict how much your customers are really worth. By measuring the net profit that you’ll take in over the course of your entire relationship with a customer, you’ll be able to narrow down exactly how valuable they are to your business.
CLV gives you crucial insight into how much money you should be spending on acquiring your customers by telling you how much value they’ll bring to your business in the long run. Rather than just racing to keep your head above water, you’ll be able to understand which customers you should be focusing on and, more importantly, why you should be focusing on them.

Why Is Customer Lifetime Value Important?

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