🎓 Definition

CLV defines the value a customer will deliver to the Retailer during her lifetime, either from a cashflow perspective (sales) or profitably (margin) perspective.

There are several ways of calculating CLV, and one of the most detailed and well-explained approaches can be found in this article from Maryna Sharapa.




Projected Sales Value or Projected Margin Value 

The amount of sales value or margin value that a customer will deliver during her lifetime as a customer. 


Identify the most valuable customers globally 


Determine the amount to be invested for Customers based on their level of importance to the Budget 


Planned promotions of Housewife Basket Items are a sure traffic driver. They should be accompanied with more premium items to balance the margin mix. 

Customer Lifetime Value (CLV) is a parameter that is customizable to user decisions.

🧪 Example of Customer Lifetime Value

For example, Store A sells maternity clothing and also toddler clothing, you might find that your pregnant customers have a low CLV because they only shop with you for a few months and the nature of the items are used temporarily. On the other hand, mothers with toddlers stay with you for 2 years (and probably shop with future kids as well) so, their CLV is higher.

❓What is CLV used for

•  To understand how your Loyal Customers interacted with your business, predict how they may interact with you in the future and how much revenue Retailers tend to make from a single loyal customer.

•  By estimating the value of a customer over their lifetime, Retailers can determine how much they are willing to spend to acquire a New Customer.

•  To tell Retailers how much loyal customers are likely to spend during their time shopping, which can help Retailers find the right combination of short-term and long-term marketing strategies.

•  To identify your top loyal customers based on their spending habits, a technique also known as ABC Analysis. This will give you more focus as you look to grow more profitable relationships with your current and future customers.

🖥️ Make it happen in Ulys CRM

How to access Customer Lifetime Value (CLV) in Ulys:1 Simple Steps

Step 1: Select Customer History Menu from the Menu Bar

And here it is. Customer Lifetime Value for each Loyal customer is displayed on the CLV column.

Learn more about Customer Lifetime Value (CLV)
Loyal Customers
New Customer
ABC Analysis