What is the user lifetime value
User Lifetime Value (CLV or CLTV), also known as customer lifetime value or LTV, stands as a pivotal metric for businesses, measuring the comprehensive value a customer adds throughout their association with a company. This critical metric considers factors like average order value, customer journey, and churn rate to gauge the overall worth of current customers. By pinpointing high-value customers and comprehending their impact on the bottom line, businesses can strategically allocate resources and deploy retention strategies to enhance the long-term profitability of their customer base. Essentially, user lifetime value offers valuable insights into the financial significance of nurturing enduring relationships with customers, influencing decisions that optimize revenue and sustain business growth.