★ Key Benefits of CLV Analysis
- Optimize Acquisition Spend: Know exactly how much you can afford to pay for a new customer
- Justify Retention Investment: Quantify the ROI of reducing churn by even 1-2%
- Segment Profitability: Identify high-value vs. unprofitable customer segments
- Forecast Revenue: Project future revenue based on customer cohorts
- Board-Ready Metrics: Present unit economics with confidence
5% retention increase = 25-95% profit increase*
CLV analysis reveals the true value of loyalty
📊 Three Calculation Methods
Simple CLV
Quick estimation from churn rate
Traditional CLV
Discounted cash flow model
Cohort-Based
Year-by-year projections
CLV:CAC Ratio
Unit economics health check