Editing Customer Lifetime Value (CLV) (section)

==Calculation==
The calculation of CLV can vary depending on the business model and customer behaviour, but a basic formula is: (Average Purchase Value x Purchase Frequency) x Average Customer Lifespan.
===Average Purchase Value===
This is the average amount that customers spend per purchase. It can be calculated by dividing the company's total revenue in a given period by the number of purchases in that period.
===Purchase Frequency===
This represents how often customers make a purchase in a given period. It can be calculated by dividing the total number of purchases by the number of unique customers.
===Average Customer Lifespan===
This indicates the average length of time that customers stay with the company before churning. This can be calculated by adding up all customer lifespans and dividing by the number of customers.