Customer Lifetime Value (CLV) represents the total amount of money a customer is expected to spend throughout his/her lifetime with your store. This metric is the net revenue that a customer generates in the period that they are your customer — from their first to last purchase.

CLV is calculated by adding a customer’s current total spend to his/her predicted future spend with your store.

CLV = (Customer’s current total spend) + (Customer’s predicted future spend)

In Segments, we have a 2-year, forward-looking CLV inclusive of current spend, and modeled based on repeat purchasers' historical patterns, such as AOV, number of purchases, and the length of their relationship with your store. For more modeling information, please refer to the lifetime package, the github repo, and Peter S. Fader’s paper.

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