Customer lifetime value (CLV)

Customer lifetime value Past customer value (PCV): total contribution toward present profits based on all past transactions 𝐶𝑉𝑖=෍ 𝑡=1 𝑇 𝐺𝐶𝑖𝑡∗1+ 𝑡 GCit= gross contribution of the ithcustomer’s transaction at time t T = number of time periods prior to the current time d = discount rate (e.g., 15% per year, 1.25% per ................
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