Increase in Customer Lifetime Value (CLTV)

Customer Lifetime Value (CLTV) is a crucial metric that quantifies the total revenue a business can reasonably expect from a single customer account. It considers a customer's revenue value and compares that number to the company's predicted customer lifespan. Businesses use this metric to identify significant customer segments that are the most valuable over time.

Loyal customers often have a higher CLTV because they are likely to continue purchasing from a business over an extended period. According to a study by Adobe, repeat customers who purchase from a company's top product segment have a CLTV 30 times higher than a typical customer. This highlights the compelling economic value of nurturing customer loyalty.