Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

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Customer lifetime value is a metric used to calculate the expected net profit a customer will generate for a company over their lifetime of purchases. It takes into account factors such as the frequency of purchases, the average purchase amount, and the customer's likelihood to remain loyal to the brand. The calculation is usually based on a discounted cash flow analysis to determine the net present value of future profits.

Customer Lifetime Value Describes the Net Present Value of the Stream