CLV (Customer Lifetime Value)

What is the customer lifetime value?

The Customer Lifetime Value (CLV), or customer lifetime value, is a critical metric in online marketing. It determines the total profit that a company expects from an individual customer throughout the entire business relationship.

Why is CLV important?

Knowing CLV allows you to better decide how much you're willing to invest in acquiring and retaining a customer. A high CLV shows that customers have a high value for your company and that it's worth investing in retaining them.

How to calculate CLV on Amazon

CLV can be calculated in various ways. A simple method is the following formula:

CLV = (Average shopping cart value x purchase frequency) x average customer lifetime

Key tips for optimising CLV

• Customer satisfaction: Exceeds customer expectations to ensure a high level of customer satisfaction
• Upselling and cross-selling: Use these techniques to increase the average shopping cart value.
• Customer loyalty: Develop effective customer loyalty programs.

conclusion

The CLV is an important tool in Amazon marketing. It allows you to adjust your marketing strategies to both attract new customers and retain existing ones. It also provides valuable insights into your customers' behavior and preferences. Don't forget to always focus on improving CLV to achieve long-term business success on Amazon.