What is lifetime value?
The lifetime value, also known as Customer lifetime value (CLV), is the amount of money that customer spend with a certain company in the time of the money lifetime.
It is a metric that shows how much company spends on acquiring new clients through marketing campaigns, advertising, and promotional materials. So it is important for the company to calculate it. Simplistically, you have to deduct all expenses for a customer from a total number of actual revenues.
Frequently asked questions
How is customer lifetime value calculated?
Customer lifetime value (CLV) is generally calculated using some variant of the following formula: CLV = (average order value x average number of orders per customer) x average customer lifespan.
Why is customer lifetime value important?
Customer lifetime value is a key metric for businesses because it represents the total value that a customer will bring to a business over the course of their relationship. CLV is important because it can help businesses make decisions about customer acquisition, retention, and other strategic decisions.
How can I increase customer lifetime value?
Some common ways to increase customer lifetime value include developing strong customer relationships, providing excellent customer service, and offering high-quality products or services.
Manage lifetime relations between your affiliates and customers. Try Lifetime Commissions plugin in Post Affiliate Pro since version 188.8.131.52. Read more.
The Lifetime Commissions plugin allows for unique identification during sales and gives commissions to the affiliate with whom the relationship exists. It is superior to cookies and does not expire after 365 days. Lifetime Commissions offer stable and reliable relationships between affiliate promoters and programs. Higher-quality affiliates prefer lifetime commissions as it offers long-term benefits and better retention strategies.
The Lifetime Commissions plugin allows for tracking lifetime referrals based on a unique customer identifier passed through custom data fields. The plugin stores the relationship between the customer and affiliate upon the customer's first purchase and assigns future sales or leads to the original referring affiliate. The plugin also offers various settings, including tie new affiliates with a parent or themselves and separate lifetime referrals per network account. Code examples are provided for tracking sales and actions.
Perpetual Assets Affiliate Program
Perpetual Assets offers a CPS affiliate program for their digital services in finance and insurance. The program has its own campaign rules, with accepted traffic sources and countries, and a cookie duration of 60 days. The affiliate program offers single-tier commissions with a minimum payout of $100, and a commission rate up to 30%. The program uses Post Affiliate Pro software and is managed by Will Lehr. A free 14-day trial is available for those interested in building their own affiliate program.