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All CollectionsMetric Glossary
Predicted Customer Lifetime Value (pCLV)
Predicted Customer Lifetime Value (pCLV)

How the pCLV is defined and calculated

Valentine Strunz-Happe avatar
Written by Valentine Strunz-Happe
Updated over 2 years ago

The predicted monetary value of your customers over their lifetime


Formula

Predicted Customer Lifetime Value = ( Contribution Margin 2 + Predicted Future Contribution Margin 2) / Customers

Explanation

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We use characteristics of your customer to find similar customers and thereby forecast the expected future CLV of each customer. We additional benchmark this against your own cohort data as well as an anonymized CLV benchmark.

Notes

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Used in the following reports

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