In marketing, customer lifetime value (CLV) is a metric that represents the total net profit a company makes from any given customer.

CLV helps organizations demonstrate the future value they can generate from their marketing initiatives.

**Formula to calculate CLV.**

Lifetime value is the product of average value of sale, number of transactions and retention time period.

**Example:**

The lifetime value of a regular customer of a shop is $600. The profit margin in the clothing store is 15%. Calculate the customer lifetime value.

Thus, the customer lifetime value is $ 90.